Analyzing Accounting Concepts and Practices

Which of the following is an accounting device used to analyze transactions?

• Ledger

• T account

• Journal

• Balance Sheet

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

• Credit

• Debit

• Asset

• Liability

The left side of a T account is the

• debit side

• credit side

• normal balance side

• equity side

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

• increased

• decreased

• unaffected

• correct

The normal balance side of a liability account is the

• debit side

• credit side

• decrease side

• left side

When an owner invests cash in a business, the owner's capital account is

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

When a business pays cash on account, a liability account is

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

When cash is received from sales, the change in the owner's equity is usually recorded

• on the debit side.

• directly in the owner's capital account.

• as interest revenue.

• in a separate revenue account.

Increases in a revenue account are shown on a T account's a. debit side. b. left side. c. credit side. d. none of these.

• debit side

• left side

• credit side

• none of these

When $1,500 cash is received on account, a. Sales is increased with a credit and Cash is increased with a credit. b. Accounts Receivable is increased with a debit and Cash is increased with a credit. c. Accounts Receivable is decreased with a credit and Cash is increased with a debit. d. Accounts Receivable is decreased with a debit and Cash is increased with a debit.

• Sales is increased with a credit and Cash is increased with a credit.

• Accounts Receivable is increased with a debit and Cash is increased with a credit.

• Accounts Receivable is decreased with a credit and Cash is increased with a debit.

• Accounts Receivable is decreased with a debit and Cash is increased with a debit.