Accounting Section 2-1 Quiz

Which is the correct accounting equation

• Assets = Liabilities x Owner's Equity

• Assets = Liabilities - Owner's Equity

• Asset = Liabilities + Owner's Equity

The accounting equation should always remain in balance.

• True

• False

In a T chart, the credit side is the _____ side

• Left

• Right

In a T chart, the debit side is the _____ side

• Left

• Right

Assets _______ with a debit

• Increase

• Decrease

Assets _______ with a credit

• Increase

• Decrease

Liabilities _______ with a credit

• Increase

• Decrease

Liabilities _______ with a debit

• Increase

• Decrease

Owner's Equity _______ with a debit

• Increases

• Decreases

Owner's Equity _______ with a credit

• Increases

• Decreases