Accounting Ch 2 Review

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

• true

• false

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

• true

• false

Each asset account has a normal credit balance.

• true

• false

Each liability account has a normal debit balance.

• true

• false

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

• true

• false

Asset accounts decrease on the credit side.

• true

• false

Each transaction changes the balances in at least two accounts.

• true

• false

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

• true

• false

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

• true

• false

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

• true

• false