Accounting Chapter 4 Review

A tool used to analyze a business transaction's effect on an account.

• Chart of Accounts

• Business Transaction

• Ledger

• T Account

The amount entered on the left side of an account

• Credit

• Debit

• Normal Balance

• Decrease Side

This requires a debit and a credit for each transaction

• Chart of Accounts

• Double Entry Accounting

• Ledger

• T Account

This is always on the increase side of an account

• Credti

• Debit

• Normal Balance

• Decrease Side

An amount entered on the right side of an account

• Credit

• Debit

• Increase Side

• Decrease Side

An "official" list of all the accounts used by a business to record its transactions.

• Chart of Accounts

• Ledger

• T Accounts

• Double Entry Accounting

The normal balance for asset accounts

• Debit

• Credit

The normal balance for the owner's capital account

• Debit

• Credit

An increase in a liability account is recorded as a

• Debit

• Credit

A decrease in an asset account is recorded as a

• Debit

• Credit