Ch 4 Accounting Review

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

• double-entry accounting

• normal balance

• chart of accounts

• T chart

Requires a debit and a credit for each transaction

• double-entry accounting

• normal balance

• chart of accounts

• T chart

Is always on the increase side of an account.

• double-entry accounting

• normal balance

• chart of accounts

• T chart

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

• double-entry accounting

• normal balance

• chart of accounts

• T chart

An amount entered on the right side of an account

• credit

• debit

An amount entered on the left side of an account

• credit

• debit

The top of the T account is used for account titles. Credits are entered on the left side of the T; debits, on the right.

• True

• False

Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the other side.

• True

• False

A credit to an account always increases it; a debit to an account always decreases it.

• True

• False

An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account.

• True

• False