Analyzing Transactions into Debit and Credit Parts

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

• True

• False

Asset accounts increase on the credit side.

• True

• False

When cash is paid for supplies, the supplies account is increased by a debit.

• True

• False

A drawing account is decreased by debits and increased by credits.

• 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

Advertising expense is increased with a debit.

• True

• False

Cash is increased with a credit.

• True

• False

Insurance is a decreased with a credit.

• True

• False

When the owner invests cash in a business, the owner's capital account is.....

• increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit