Accounting and T Accounts Quiz

What are the two sides of a T account called?

• Left and Right

• Top and Bottom

• Debit and Credit

• Increase and Decrease

Which side of a T account typically shows decreases for liability accounts?

• Credit side

• Debit side

• Balance side

• Increase side

What is the main function of the credit side in a T account ?

• To show increases in assets

• To show decreases in liabilities

• To show increases in liabilities

• To calculate interest

Which of the following is recorded on the left side of a T account?

• Credit

• Debit

• Balance

• Total

Which side of a T account is used to record increases in liabilities?

• Debit side

• Credit side

• Left side

• Asset side

What is the relationship between assets, liabilities, and owner's equity in the accounting equation?

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets + Liabilities = Owner's Equity

• Assets - Liabilities = Owner's Equity

Where are liabilities and the owner’s capital account located in the accounting equation?

• Left side

• Right side

• Top side

• Bottom side

What type of balance do assets normally have?

• Credit balance

• Debit balance

• Zero balance

• Negative balance

In accounting, what does an increase on the left side of the account indicate?

• Increase in liabilities

• Increase in assets

• Decrease in assets

• Decrease in liabilities

What is the normal balance for the owner’s capital account?

• Debit balance

• Credit balance

• Zero balance

• Negative balance