Accounting Chapter 2 Flashcard Review

Front

The values of all things owned (assets) are on the accounting equation’s:

Back

left side

Front

The values of all equities or claims against the assets (liabilities and owner’s equity) are on the accounting equation’s:

Back

right side

Front

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

Back

debit

Front

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

Back

credit

Front

The normal balance side of any asset account is the:

Back

debit side

Front

The normal balance side of any liability account is the:

Back

credit side

Front

The normal balance side of an owner’s capital account is the:

Back

credit side

Front

Debits must equal credits:

Back

for each transaction.

Front

Decreases in an asset account are shown on a T account’s:

Back

credit side

Front

Increases in an asset account are shown on a T account’s:

Back

debit side