Chapter 2 Review

A drawing account is increased by debits and decreased by credits.

• True

• False

Accounts Payable accounts are increased with a debit.

• True

• False

Accounts Receivable accounts are classified as a(an) _________ account.

• Asset

• Liability

• Capital

• Revenue

Accounts Receivable accounts are increased with a credit.

• True

• False

Advertising Expense is increased on the _______________ side

• Debit

• Credit

Asset accounts are increased with a debit and decreased with a debit.

• True

• False

Assets decrease on the debit side.

• True

• False

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

• True

• False

Decreases to liability accounts are recorded on the credit side.

• True

• False

Drawing accounts have a _____________ balance

• Debit

• Credit

• There is no drawing account