Accounting Chapters 1-5 Review

An accounting device used to analyze transactions is a T account

• true

• false

Increases in a revenue account are shown on a T accounts

• debit side

• left side

• credit 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 accounting equation is most often stated as

• assets + liabilities = owner's equity

• assets = liabilities + owner's equity

• liabilities + owner's equity = assets

• assets = liabilities - owner's equity

Recording transactions in a journal

• journalizing

• memorandum

• double entry accounting

• receipt

Cash is increased

• with a debit

• with a credit

• with a normal balance

• without a normal balance

The recording of debit and credit parts of a transaction

• journal

• sales document

• double entry accounting

• entry

Any business activity that changes assets, liabilities, or owner's equity

• revenue

• transaction

• sale on account

• expense

The equation showing the relationship among assets, liabilities, owner's equity

• accounting equation

• accounting system

• financial equation

• asset equation

Paid cash for supplies

• cash is debited and supplies is credited

• supplies is debited and cash is credited

• accounts payable is debited and cash is credited

• accounts receivable is debited and cash is credited