Accounting and T Accounts Flashcard

Front

What are the two sides of a T account called?

Back

Debit and Credit

Front

Which side of a T account typically shows decreases for liability accounts?

Back

Debit side

Front

What is the main function of the credit side in a T account?

Back

To show increases in liabilities

Front

Which of the following is recorded on the left side of a T account? Credit, Debit, Balance, Total

Back

Debit

Front

Which side of a T account is used to record increases in liabilities?

Back

Credit side

Front

What is the relationship between assets, liabilities, and owner's equity in the accounting equation?

Back

Assets = Liabilities + Owner's Equity

Front

Where are liabilities and the owner’s capital account located in the accounting equation?

Back

Right side

Front

What type of balance do assets normally have?

Back

Debit balance

Front

In accounting, what does an increase on the left side of the account indicate?

Back

Increase in assets

Front

What is the normal balance for the owner’s capital account?

Back

Credit balance