SV Accounting 1 Chapter 2

A list of accounts used by a business is a chart of accounts.

• True
• False

Asset accounts increase on the credit side.

• True
• False

Each liability account has a normal credit balance.

• True
• False

Advertising expense is increased with a debit.

• True
• False

When cash is paid for rent, Rent Expense is 

• increased by a debit
• increased by a credit
• decreased by a debit
• decreased by a credit

Each asset account has a normal credit balance.

• TRUE
• FALSE

Asset accounts decrease on the credit side.

• TRUE
• FALSE

Each transaction changes the balances in at least two accounts.

• TRUE
• FALSE

The normal balance side of an Accounts Receivable account is a debit.

• TRUE
• FALSE

Utilities Expense is increased with a debit.

• TRUE
• FALSE