Accounting CHAPTER 2

The left side of a T account is the

• debit side
• credit side
• normal balance side
• equity side

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is:

• increased
• decreased
• unaffected
• correct

The normal balance side of a liability account is the:

• debit side
• credit side
• decrease side
• left side

When an 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

When a business pays cash on account, the liability account is:

• increased by a debit
• increased by a credit
• decreased by a debit
• decreased by a credit

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

Increases in a revenue(Sales) account are shown on a T account’s

• debit side
• left side
• credit side
• none of these

When $1,500 cash is received on account,

• Sales is increased with a credit and Cash is increased with a credit
• Accounts Receivable is increased with a debit and Cash is increased with a credit
• Accounts Receivable is decreased with a credit and Cash is increased with a debit
• Accounts Receivable is decreased with a debit and Cash is increased with a debit

The normal balance side of any revenue account is the:

• debit side
• credit side
• left side
• none of these

When a business receives revenue, Sales is

• increased by a debit
• increased by a credit
• decreased by a debit
• decreased by a credit