ACCOUNTING Ch 1 - 4 Review

Increases in a revenue account are shown on a T accounts

• debit side

• left side

• credit side

• none of these

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 left side of a T account is the

• debit side

• credit side

• normal balance side

• equity side

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

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

Cash is increased

• with a debit

• with a credit

• with a normal balance

• without a normal balance

Recording transactions in a journal

• journalizing

• double-entry accounting

• receipt

• posting

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

• revenue

• transaction

• sale on account

• expense

The recording of debit and credit parts of a transaction

• journal

• sales document

• entry

• double entry accounting

Received $1800 cash from sales

• cash is debited and owner's equity is credited

• owner's equity is debited and cash is credited

• sales is debited and cash is credited

• cash is debited and sales is credited