Accounting 1 Final Exam Review 1

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

• Right 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

• Credit side

• Decrease side

• Right side

The normal balance side of any revenue account is the

• Debit side

• Credit side

• Decrease side

• Right side

When $1,500 cash is received on account,

• Sales is increased with a credit and Cash is increased with a credit

• Accounts Receivable is increased with a debit and Cash is increased with a credit

• Accounts Receivable is decreased with a credit and Cash is increased with a debit

• Accounts Receivable is decreased with a debit and Cash is increased with a debit

The first digit in the account number 520 means that the account is in the

• Expense division of the general ledger

• Revenue division of the general ledger

• Liability division of the general ledger

• Asset division of the general ledger