Debits and Credits

In a T-Account, a debit is recorded on the ________________________ side.

• right

• left

• credit

• accounting

The normal balance of an asset account is on the ________________________ side.

• right

• left

• credit

• accounting

In the accounting equation, which side do the assets belong to?

• Right

• Center

• Left

• Bottom

Which of the following best describes a T-Account?

• A graphical representation of assets

• A visual tool to analyze account transactions

• A method to calculate profits

• A type of financial report

What is the purpose of the double-entry accounting system?

• To simplify tax calculations

• To maintain the accounting equation and keep it in balance

• To increase profit margins

• To reduce paperwork

In a T-Account, where are credits recorded?

• Left side

• Right side

• Top side

• Bottom side

Which side of a T-Account is used to track increases in assets?

• Left side

• Right side

• Top side

• Bottom side

Which side of a T-Account is used to track increases in liabilities?

• Left side

• Right side

• Top side

• Bottom side

What do we call the accounting system that ALWAYS has al least TWO accounts effected per transation?

• Single-entry system

• Double-entry system

• Cash accounting

• Accrual accounting

What is the primary function of the double-entry system?

• To reduce costs

• To ensure accuracy in financial records

• To increase sales

• To simplify bookkeeping