chapter 4 test review accounting-- byrd

.The top of the T account is used for account titles. Credits are entered on the left side of the T; debits, on the right.

• true

• false

Debit and credit rules for accounts on one side of the accounting equation are mirror images of those on the other side.

• true

• fasle

A credit to an account always increases it; a debit to an account always decreases it.

• T

• F

An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account

• T

• F

5.       The payment of a liability is recorded by a debit to the liability5. account and a credit to the owner's capital account.

• T

• F

5.       Every transaction affects two or more accounts and is recorded by6. equal amounts of debits and credits.

• T

• F

5.       A business groups its accounts in a ledger.

• T

• F

5.       A business transaction can affect two accounts on the same side of8. the accounting equation and still leave the equation in balance.

• T

• F

5.       A chart of accounts is limited to 50 accounts

• T

• F

5.       The difference between the debit and credit amounts in an account10.

is the account balance.

• T

• F