Accounting Cpt. 2 Review - Analyze Trans. into Debit & Credit

Each asset account has a normal credit balance.

• True

• False

An amount recorded on the right side of a T account is a debit.

• True

• False

An accounting device used to analyze transactions is a T account.

• True

• False

Each liability account has a normal debit balance.

• True

• False

The balance of an account increases on the same side as the normal balance side.

• True

• False

Asset accounts decrease on the credit side.

• True

• False

A list of accounts used by a business is a chart of accounts.

• True

• False

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

• True

• False

Common accounting practice is to record withdrawals as debits directly in the owner’s capital account.

• True

• False

The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.

• True

• False