Accounting - Chapter 4 Test Review

What is the account classification for Accounts Receivable?

• Asset

• Liability

• Owner's Equity

• Revenue

What is the increase or normal balance side of the Capital account?

• Debit

• Credit

What is the decrease side of an Asset account?

• Debit

• Credit

When a customer pays us back, Cash and ____ accounts are affected?

• Accounts Payable

• Accounts Receivable

• Capital

• Liability

Investments increase Capital--what else increases Capital?

• Cash

• Expenses

• Revenues

• Withdrawals

____ is a list of all accounts used by a business to record transactions.

• Chart of accounts

• Classifications of accounts

• Double-entry accounting

• T-Account

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

• Chart of accounts

• Classification of accounts

• Ledger

• T-account

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

• Credit

• Debit

• Normal balance

• Total

____ requires a debit and a credit for each transaction.

• Credit

• Debit

• Double entry accounting

• Ledger

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

• Credit

• Debit

• Normal balance

• T-account