Understanding Capital Accounts and T Accounts

The right side of the T account is the...

• Debit Side

• Credit SIde

• Normal Balance Side

• Equity Side

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

• Debit Side

• Credit Side

• Decrease Side

• Right Side

When the Owner invests cash into the business, the owner's capital account is...

• Increased by a debit

• Increased by a credit

• Decreased by a debit

• Decreased by a credit

When a business pays cash on account, a liability account is...

• Increased by a debit

• Increased by a credit

• Decreased by a debit

• Decreased by a credit

When cash is received from sales, the change in the owner's equity is usually...

• Recorded in a separate revenue account

• recorded directly in the owner's capital account

• recorded as interest revenue

• always recorded on the debit side

Increases in a revenue account are shown on a T account's...

• Debit side

• Credit side

• Left Side

• None of these

The normal balance side of any expense account is the...

• Debit side

• Credit Side

• Right Side

• None of these