Accounting Chapter 2

An accounting device used to analyze transactions is a T account.

• True

• False

Decreases to liability accounts are recorded on the credit side.

• True

• False

To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account.

• True

• False

An amount recorded on the right side a T account is a debit.

• True

• False

Each asset account has a normal credit balance.

• True

• False

Prepaid Insurance is decreased with a credit.

• True

• False

Cash is increased with a debit.

• True

• False

Each liability account has a normal debit balance.

• True

• False

The balance of an account increases on the same side as the normal balance side.

• True

• False

Utilities Expense is increased with a debit.

• True

• False