WorksheetsAccounting Chapter 2
Total questions: 29
Worksheet time: 21mins
Name
Class
Date
1.
An accounting device used to analyze transactions is a T account.
a)
TRUE
b)
FALSE
2.
An amount recorded on the right side of a T account is a debit.
a)
TRUE
b)
FALSE
3.
Each asset account has a normal credit balance.
a)
TRUE
b)
FALSE
4.
Each liability account has a normal debit balance.
a)
TRUE
b)
FALSE
5.
The balance of an account increases on the same side as the normal balance side.
a)
TRUE
b)
FALSE
6.
Asset accounts decrease on the credit side.
a)
TRUE
b)
FALSE
7.
Each transaction changes the balances in at least two accounts.
a)
TRUE
b)
FALSE
8.
A list of accounts used by a business is a chart of accounts.
a)
True
b)
False
9.
When cash is paid for supplies, the Supplies account is increased by a credit.
a)
TRUE
b)
FALSE
10.
Common accounting practice is to record withdrawals as debits directly in the owner’s capital account.
a)
TRUE
b)
FALSE
11.
The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.
a)
TRUE
b)
FALSE
12.
A drawing account is increased by debits and decreased by credits.
a)
TRUE
b)
FALSE
13.
Increases in expense accounts are recorded as debits because they decrease the owner’scapital account.
a)
TRUE
b)
FALSE
14.
The normal balance side of an Accounts Receivable account is a debit.
a)
TRUE
b)
FALSE
15.
Accounts Payable accounts are increased with a debit.
a)
TRUE
b)
FALSE
16.
Utilities Expense is increased with a debit.
a)
TRUE
b)
FALSE
17.
Cash is increased with a debit.
a)
TRUE
b)
FALSE
18.
Prepaid Insurance is decreased with a credit.
a)
TRUE
b)
FALSE
19.
To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner’s capital account.
a)
TRUE
b)
FALSE
20.
Decreases to liability accounts are recorded on the credit side.
a)
TRUE
b)
FALSE
21.
The left side of a T account is the
a)
a. debit side.
b)
b. credit side.
c)
c. normal balance side.
d)
d. equity side.
22.
If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is
a)
a. increased.
b)
b. decreased.
c)
c. unaffected.
d)
d. correct.
23.
The normal balance side of a liability account is the
a)
a. debit side.
b)
b. credit side.
c)
c. decrease side.
d)
d. right side.
24.
When an owner invests cash in a business, the owner’s capital account is
a)
a. increased by a debit.
b)
b. increased by a credit.
c)
c. decreased by a debit.
d)
d. decreased by a credit.
25.
When a business pays cash on account, a liability account is
a)
a. increased by a debit.
b)
b. increased by a credit.
c)
c. decreased by a debit.
d)
d. decreased by a credit.
26.
When cash is received from sales, the change in the owner’s equity is usually recorded
a)
a. on the debit side.
b)
b. directly in the owner’s capital account.
c)
c. as interest revenue.
d)
d. in a separate revenue account.
27.
Increases in a revenue account are shown on a T account’s
a)
a. debit side.
b)
b. left side.
c)
c. credit side.
d)
d. none of these.
28.
When $1,500 cash is received on account,
a)
a. Sales is increased with credit and Cash is increased with a credit.
b)
b. Accounts Receivable is increased with a debit and Cash is increased with a credit.
c)
c. Accounts Receivable is decreased with a credit and Cash is increased with a debit.
d)
d. Accounts Receivable is decreased with a debit and Cash is increased with a debit.
29.
The normal balance side of any revenue account is the
a)
a. debit side.
b)
b. credit side.
c)
c. right side.
d)
d. none of these.
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