Chapter 2 Accounting Test
A drawing account is increased by debits and decreased by credits.
T
A list of accounts used by a business is a chart of accountants.
T
Accounts Payable accounts are increased with a credit.
T
Before a transaction is recorded in the records of a business, it is analyzed to determine which accounts are changed and how.
T
Businesses use accounts to summarize all the information pertaining to a single term.
T
Increases in revenue accounts are recorded as credits because they increase the owners capital account.
T
Maya Abbasi, Capital is decreased with a debit.
T
The normal balance side of an Accounts Payable account is credit.
T
The right side of a liability account is the normal balance side, because liabilities are on the right side of the accounting equation.
T
Accounts Receivable accounts are increased with a credit.
F
An amount recorded on the left side of a T account is a credit.
F
Asset accounts decrease on the debit side.
F
Cash is an asset account with a normal credit balance.
F
Common accounting practice is to record withdrawals as debits directly in the owner's capital account.
F
Each liability account has a normal debit balance
F
Increases in expense accounts accounts are recorded as credits because they increase the owner's capital account.
F
Increases in revenue accounts are recorded as debits because they increase the owner's capital account.
F
Maya, Abbasi, Drawing is decreased with a debit.
F
The balance of an account decreases on the same side as the normal balance.
F
The owner's equity account is increased on the debit side because the owner's capital account has a normal balance on the debit side.
F
