Accounting Review

Front

What is the normal balance for assets?

Back

DEBIT

Front

What is the normal balance for liabilities?

Back

CREDIT

Front

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

Back

CREDIT

Front

TRUE OR FALSE:  ASSETS DECREASE ON THE CREDIT SIDE. 

Back

TRUE

Front

TRUE OR FALSE:  NORMAL BALANCE IS THE SIDE OF THE ACCOUNT THAT IS DECREASED WHEN THERE IS A TRANSACTION.

Back

FALSE

Front

TRUE OR FALSE:  LIABILITIES DECREASE ON THE CREDIT SIDE.

Back

FALSE 

Front

TRUE OR FALSE:  OWNER'S CAPITAL ACCOUNT INCREASES ON THE CREDIT SIDE AND DECREASES ON THE DEBIT SIDE.

Back

TRUE 

Front

CASH IS: An Asset, A Liability, Owner's Equity

Back

An Asset

Front

ACCOUNTS RECEIVABLE IS:

Back

An Asset

Front

How many accounts are affected when a transaction is made? Options: One, Two, Three

Back

Two