Study guide ch 2

Question 1

an accounting device used to analyze transactions

Answer 1

T account

Question 2

an amount recorded on the left side of a T account

Answer 2

debit

Question 3

an amount recorded on the right side of a T account

Answer 3

credit

Question 4

the side of the account that is increased

Answer 4

normal balance

Question 5

a list of accounts used by a business

Answer 5

chart of accounts

Question 6

the value of all things owned (assets) are on the accounting equation’s

Answer 6

left side

Question 7

the values of all equities or claims against the assets (liabilities and owner’s equity) are on the accounting equation’s

Answer 7

right side

Question 8

an amount recorded on the left side of a T account is a

Answer 8

debit

Question 9

an amount recorded on the right side of a T account is a

Answer 9

credit

Question 10

the normal balance side of any asset account is the

Answer 10

debit side

Question 11

the normal balance side of any liability account is the

Answer 11

credit side

Question 12

the normal balance side of an owner’s capital account is the

Answer 12

credit side

Question 13

debits must equal credits

Answer 13

for each transaction

Question 14

decreases in an asset account are shown on a T account’s

Answer 14

credit side

Question 15

increases in an asset account are shown on a T account’s

Answer 15

debit side

Question 16

decreases in any liability account are shown on a T account’s

Answer 16

debit side

Question 17

increases in a revenue account are shown on a T account’s

Answer 17

credit side

Question 18

the normal balance side of any revenue account is the

Answer 18

credit side

Question 19

the normal balance side of any expense account is the

Answer 19

debit side

Question 20

the normal balance side of an owner’s drawing account is the

Answer 20

debit side