Chapter 2 Accounting

An amount recorded on the left side of an account is a:

• Credit

• Debit

• Balance

• Liability

An accounting device used to analyze transactions is called a:

• Ledger

• T Account

• Balance Sheet

• Trial Balance

The normal balance of an asset account is:

• Debit

• Credit

• Left or right, depending on the account

• None of these

Which side of the accounting equation shows liabilities and owner's equity?

• Left side

• Right side

• Both sides

• Neither side

Which of the following is an example of an asset?

• Accounts Payable

• Supplies

• Owner’s Capital

• Sales

Increases in revenue accounts are recorded on the:

• Debit side

• Credit side

• Left side

• None of these

Decreases in asset accounts are recorded on the:

• Debit side

• Credit side

When cash is received from sales, the debit is to:

• Sales

• Accounts Receivable

• Cash

• Capital

Which of the following accounts is increased with a debit?

• Accounts Payable

• Cash

• Owner’s Capital

• Sales

A list of accounts used by a business is called a:

• Chart of Accounts

• Ledger

• Journal

• Balance Sheet