Accounting Chapter 4 Review

The amount entered on the left side of an account is the _____________.

• debit

• normal balance

• T account

An account's __________ is always on the increase side of an account.

• debit

• normal balance

• T account

The _________ is an "official" list of all the accounts used by a business to record its transactions.

• chart of accounts

• double-entry accounting

• T-account

Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the other side.

• True

• False

An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account.

• True

• False

Every transaction affects two or more accounts and is recorded by equal amounts of debits and credits.

• True

• False

A business transaction can affect two accounts on the same side of the accounting equation and still leave the equation in balance.

• True

• False

The difference between the debit and credit amounts in an account is the account balance.

• True

• False

The normal balance for the owner's capital account is a _____________.

• Debit

• Credit

A decrease in an asset account is recorded as a ________.

• Debit

• Credit