Chapter 4

A debit is an entry on the left-side of a T-account

• True

• False

Assets use the debit side of the T-account to increase their value

• True

• False

The normal balance of an asset is a credit

• True

• False

The chart of accounts lists only some of the accounts a company uses. The accounts are listed in a logical order and are given numbers to identify each account.

• True

• False

The __________ __________ groups the activities of each account together and records the updated balance of each account

• Journal Ledger

• Adjusted Trial Balance

• General Ledger

• Celine Dion

Preparing a trial balance is the first step of the accounting cycle

• True

• False

A credit increases unearned revenue

• True

• False

A debit increases prepaid rent

• True

• False

Purchased equipment for $1,900, which will be paid later

• Debit Accounts Payable $1,900; Credit Equipment $1,900

• Debit Equipment $1,900; Credit Accounts Payable $1,900