Accounting Chapter 2 Review

Front

An amount owed by a business is a

Back

liability

Front

An amount recorded on the right side of a T account is a debit.

Back

FALSE

Front

Each liability account has a normal debit balance.

Back

FALSE

Front

Asset accounts decrease on the credit side. TRUE or FALSE?

Back

TRUE

Front

Each transaction changes the balances in at least two accounts.

Back

TRUE

Front

When cash is paid for supplies, the Supplies account is increased by a credit.

Back

FALSE

Front

A drawing account is increased by debits and decreased by credits. TRUE or FALSE?

Back

TRUE

Front

Increases in expense accounts are recorded as debits because they decrease the owner’s capital account.

Back

TRUE

Front

The normal balance side of an Accounts Receivable account is a debit.

Back

TRUE

Front

Utilities Expense is increased with a debit.

Back

TRUE