T Accounts Review

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

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

• True

• False

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

• True

• False

Accounts Payable accounts are increased with a debit.

• True

• False

The left side of an asset account is the credit side, because asset accounts are on the left side of the accounting equation.

• True

• False

Prepaid Insurance is decreased with a credit.

• True

• False

The left side of a T account is the

• debit side

• credit side

• normal balance

• equity 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