Accounting Chapter 2

Front

An accounting device used to analyze transactions is a T account.

Back

TRUE

Front

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

Back

FALSE

Front

Each asset account has a normal credit balance.

Back

FALSE

Front

Each liability account has a normal debit balance. True or False?

Back

FALSE

Front

The balance of an account increases on the same side as the normal balance side.

Back

TRUE

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

A list of accounts used by a business is a chart of accounts.

Back

True

Front

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

Back

FALSE

Front

Common accounting practice is to record withdrawals as debits directly in the owner’s capital account. TRUE or FALSE?

Back

FALSE