AGMGT 2115 - Quiz 2

A credit always means an entry on the right side of an account.

• TRUE

• FALSE

An increase in expense is recorded by debit.

• TRUE

• FALSE

An account balance is the difference between total debits and total credits in an accounts.

• TRUE

• FALSE

An increase in an expense causes an increase in the owner's equity.

• TRUE

• FALSE

An entry to Accounts Payable will be on the left side of the account if there is an increase and on the right side of the account if there is an decrease.

• TRUE

• FALSE

A credit signifies increases in liabilities , expenses, capital and revenue and decreases in assets and withdrawals.

• TRUE

• FALSE

Accounts Receivable is an asset account whose normal balance is a credit.

• TRUE

• FALSE

In any transaction, the total peso amount of debits must equal the total peso amount of credits.

• TRUE

• FALSE

Withdrawals of assets from a business by the owners are considered to be decrease in expenses.

• TRUE

• FALSE

A decrease in revenues is recorded by debit.

• TRUE

• FALSE