Accounting Chapter 2

The left side of a T account is the

• debit side

• credit side

• normal balance side

• equity side

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is

• increased

• decreased

• unaffected

• correct

The normal balance side of a liability account is the

• debit side

• credit side

• decrease side

• left side

When an owner invests cash in a business, the owner's capital account is

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

When a business pays cash on account, a liability account is

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

When cash is received from sales, the change in the owner's equity is usually recorded

• on the debit side

• directly in the owner's capital account

• as interest revenue

• in a separate revenue account

Increases in a revenue account are shown on a T account's

• debit side

• left side

• credit side

• none of these

When $1,500 cash is received on account

• sales is increased with a credit and Cash is increased with a credit.

• A/R is increased with a debit and Cash is increased with a credit.

• A/R is decreased with a credit and Cash is increased with a debit.

• A/R is decreased with a debit and Cash is increased with a debit.

The normal balance side of any revenue account is the

• debit side

• credit side

• left side

• none of these