ACCOUNTING CHAPTER 2 (CENTURY 21 NEW) REVIEW

Each liability account has a normal debit balance.

• TRUE
• FALSE

An amount recorded on the right side of a T account is a debit.

• TRUE
• FALSE

Asset accounts decrease on the credit side.

• TRUE
• FALSE

Each transaction changes the balances in at least two accounts.

• TRUE
• FALSE

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

• TRUE
• FALSE

A drawing account is increased by debits and decreased by credits.

• TRUE
• FALSE

Increases in expense accounts are recorded as debits because they decrease the owner’scapital account.

• TRUE
• FALSE

The normal balance side of an Accounts Receivable account is a debit.

• TRUE
• FALSE

Utilities Expense is increased with a debit.

• TRUE
• FALSE

Cash is increased with a debit.

• TRUE
• FALSE