Accounting Ch.2

An Accounting device used to analyze transactions is a T account

• True

• False

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

• True

• False

Each asset account has a normal credit balance

• True

• False

Each liability account has a normal debit balance

• True

• False

The balance of an account increases on the same side as the normal balance side

• True

• False

Asset accounts decrease on the credit side

• False

• True

Each transaction changes the balances in at least two accounts

• False

• True

A list of accounts used by a business is a chart of accounts

• False

• True

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

• False

• True

Common accounting practice is to record withdrawals as debits directly in the owner's captial account

• False

• True