Accounting Unit 4 Part 1

A chart of accounts is limited to 50 accounts.

• True

• False

The normal balance for asset account is a ________.

• credit

• debit

The normal balance for the owner’s capital account is a ____________.

• credit

• debit

The difference between the debit and credit amounts in an account is the account balance.

• True

• False

The normal balance for Accounts Payable is a _____________.

• credit

• debit

The normal balance of an account is always on the ___________.

• side of the current account balance

• side used to record increases

• credit side of the account

• debit side of the account

The ______ is an “official” list of all the accounts used by a business to record its transactions.

• chart of accounts

• double entry accounting

• normal balance

• T chart

An account’s ________ is always on the increase side of an account is a(n)____.

• chart of accounts

• double entry accounting

• normal balance

• T Account

The first digit in the account number 520 means that the account is in the

• expense division

• asset division

• liability division

• owner's equity division

When account are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are

• journalizing

• doing file maintenance