Accounting 201 Chapter 2 double-entry system

Which of the following is true about T accounts?

• The left side of a T account is called the credit side.

• The right side of a T account is called the debit side.

• The left side of a T account is called the debit side.

A list of the accounts used by a business is called the

• chart of accounts

• T chart

• journal

Which of the following groups of accounts increases with a credit?

• Liabilities and expenses

• Capital and drawing

• Revenues and capital

• Assets and liabilities

A credit may signify a

• decrease in liabilities

• decrease in revenue

• decrease in capital

• decrease in assets

In which of the following types of accounts are decreases recorded by debits?

• assets

• liabilities

• expenses

• drawing

Which of the following accounts are debited to record increases

• drawing and liabilities

• assets and expenses

• expenses and liabilities

• assets and liabilities

Which of the following groups of accounts have a normal debit balance?

• Capital and assets

• Assets and expenses

• Liabilities and capital

• Revenues, liabilities, and capital

A debit signifies a decrease in

• expenses

• revenues

•  drawing

• assets

Which side of the account increases the cash account?

• Credit

• Neither a debit nor a credit

• Debit

• Either a debit or a credit

A financial statement that is a list of the assets, liabilities, and owner’s equity as of a specific date

• income statement

• statement of cash flows

• statement of owner's equity

• balance sheet