Accounting example #80964

An accounting device used a analyze transactions is a T account

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

Each asset account has a normal credit balance.

Each liability account has a normal debit balance.

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

Asset accounts decrease on the credit side.

Each transaction changes the balances in at least two accounts.

A list of accounts used by a business is a chart of accounts.

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

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

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

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

Increases in expense accounts are recorded as debits, because they decrease the owner's capital account.

The normal balance side of an Accounts Receivable account is a debit.

Accounts Payable accounts are increased with a debit.

Utilities Expense is increased with a debit.

Cash is increased with a debit.

Prepaid Insurance is decreased with a credit

To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account.

Decreases to liability accounts are recorded on the credit side.

The left side of a T account is the (A) debit side. (B) credit side. (C) normal balance side. (D) equity side.

If an amount is recorded on the side of a T account opposite the normal balance side, the account balance is (A) increased. (B) decreased. (C) unaffected. (D) correct.

The normal balance side of a liability account is the (A) debit side. (B) credit side. (C) decrease side. (D) left side.

When an owner invests cash in a business, the owner's capital account is (A) increased by a debit. (B) increased by a credit. (C) decreased by a debit. (D) decreased by a credit.

When a business pays cash on account, a liability account is (A) increased by a debit. (B) increased by a credit. (C) decreased by a debit. (D) decreased by a credit.

When cash is received from sales, the change in the owner's equity is usually recorded (A) on the debit side. (B) directly in the owner's capital account. (C) as interest revenue. (D) in a separate revenue account.

Increases in a revenue account are shown on a T account's (A) debit side. (B) left side. (C) credit side. (D) none of these.

When $1,500 cash is received on account, (A) Sales is increased with a credit and Cash is increased with a credit. (B) Accounts Receivable is increased with a debit and Cash is increased with a credit. (C) Accounts Receivable is decreased with a credit and Cash is increased with a debit. (D) Accounts Receivable is decreased with a debit and Cash is increased with a debit.

The normal balance side of any revenue account is the (A) debit side. (B) credit side. (C) left side. (D) none of these.

Prepaid insurance

sales

supplies

accounts receivable-tom dayton

advertising expense

cash

barbara casey, drawing

barbara casey, capital

accounts payable-emmer supplies