Accounting Chapter 2

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

• True

• False

An amount recorded on the left side of a T account is a credit.

• True

• False

Each asset account has a normal debit balance.

• 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

Asset accounts increase on the credit side.

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• False

Each transaction changes the balances in at least two accounts.

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• False

A list of accounts used by a business is called a record of accounts.

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• False

When cash is paid for supplies, the supplies account is increased by a credit.

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• False

Common accounting practice is to record withdrawals as debits in the owner's capital account.

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• False