Accounting Chapter 2

An accounting device used to analyze a transaction is a T account.

• true

• false

An amount recorded on the left side of a T account is a credit.

• true

• false

Each asset account has a normal debit balance.

• true

• false

Each liability account has a normal credit balance.

• true

• false

Asset accounts increase on the credit side.

• true

• false

The account classification for Prepaid Insurance.

• asset

• liability

• owner's equity

The account classification for rent expense.

• asset

• liability

• owner's equity

The account classification for cash.

• asset

• liability

• owner's equity

The account classification for ANY payable.

• asset

• liability

• owner's equity

The account classification for ANY receivable.

• asset

• liability

• owner's equity