Accounting - Analyzing Transactions Review

Supplies is a(n) ______ account.

To increase an asset account, you ______ it.

A ______ increases a liability account.

Employee wages is a _liability__ account.

• True

• False

An accounts payable is an _asset__ account.

• True

• False

Liability accounts have a credit normal balance because it decreases on that side.

• True

• False

Capital is a/an ______ account, and ______ increases it.

• equity, credit
• liability, debit

• asset, debit

• none of the above

Prepaid insurance is a/an ______ account, and ______ to increases it.

A building lease is a liability account, and is ______ to show a decrease.

All asset accounts are found on the ____________ side of the accounting equation.