Accounting 1: T-Accounts Quiz

Which equation is considered the Accounting Equation?

• Assets - Liabilities = Owner's Equity

• Liabilities = Owner's Equity - Assets

• Assets= Liabilities + Owner's Equity

• Assets= Liabilities - Owner's Equity

Assets are on the ________ side of the Accounting Equation.

• Left

• Right

Liabilities and Owner's Equity are on the ______ side of the Accounting Equation.

• Left

• Right

A list of accounts used by a business are called

• List of Accounts

• Assets

• Expenses

• Chart of Accounts

When setting up T-Accounts, the "Debit" side is the ______ side.

• Left

• Right

When setting up T-Accounts, the "Credit" side is the ______ side.

• Left

• Right

Normal Balance is the side of the account that is_______.

• Increased

• Decreased

Asset accounts normal balance is the _____ side.

• Credit (Right side of a T-account)

• Debit (Left side of a T-account)

Liability accounts normal balance is the _____ side.

• Credit (Right side of a T-account)

• Debit (Left side of a T-account)

Owner's Equity accounts normal balance is the _____ side.

• Credit (Right side of a T-account)

• Debit (Left side of a T-account)