The total of all assets must equal the total of all liabilities.

• True
• False

A debit is recorded on the right side.

• True
• False

A credit is recorded on the left side.

• True
• False

Account balances increase on the normal balance side of an account.

• True
• False

Account balances decrease on the side opposite the normal balance side of an account.

• True
• False

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

• True
• False

Every transaction must affect accounts on both sides of the accounting equation.

• True
• False

Each transaction changes the balances of at least two accounts.

• True
• False

When supplies are bought on account, both the supplies and cash accounts are affected.

• True
• False

Revenue increases owner’s equity while expenses decrease owner’s equity.

• True
• False