Accounting Chapter #2 Txtbk Version 10e

Received cash on account from Oakdale School. What account is debited?

Answer explanation

Cash

Bought supplies on account. What is the credit?

Answer explanation

Accounts Payable

A transaction to record merchandise purchased with a trade discount would include a debit to Merchandise Discount.

• True

• False

A list of accounts used by a business.

• Chart of accounts

• Credit

• Debit

• T-account

The right side of a t-account is always the

• Debit

• Credit

• Increase side

• Decrease side

A purchase of merchandise for cash would be posted

• individually to Purchases and individually to Accounts Payable.

• individually to Purchases.

• as part of a column total to Purchases.

• as part of column totals to Purchases and Accounts Payable.

When cash is received from sales, the change in the owner’s equity is usually recorded

• on the debit side

• directly in the owner's capital account

• as interest revenue

• in a separate revenue account

Withdrawal information is recorded separately from owner's equity to avoid many transactions in the owner's equity account.

• True

• False

Cash is increased with a:

• debit

• credit

Liability accounts decrease on the credit side.

• True

• False