T-account Review

An amount recorded on the right side of a T account is a debit.

• TRUE
• FALSE

Each asset account has a normal credit balance.

• TRUE
• FALSE

Each liability account has a normal debit balance.

• TRUE
• FALSE

The balance of an account increases on the same side as the normal balance side.

• TRUE
• FALSE

Asset accounts decrease on the credit side.

• TRUE
• FALSE

When cash is paid for supplies, the Supplies account is increased by a credit.

• TRUE
• FALSE

Common accounting practice is to record withdrawals as debits directly in the owner’s capital account.

• TRUE
• FALSE

The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.

• TRUE
• FALSE

A drawing account is increased by debits and decreased by credits.

• TRUE
• FALSE

Increases in expense accounts are recorded as debits because they decrease the owner’scapital account.

• TRUE
• FALSE