Transactions That Affect Assets, Liabilities And Owner's Equity

13 Questions | Total Attempts: 368

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Transactions That Affect Assets, Liabilities And Owner

ANSWER TRUE/FALSE TO THE QUESTIONS LISTED BELOW:


Questions and Answers
  • 1. 
    1.  The normal balance side of a Cash account is credit.
    • A. 

      True

    • B. 

      False

  • 2. 
    2.  The normal balance side for an asset account is the debit side.
    • A. 

      True

    • B. 

      False

  • 3. 
    3.  "Debit" means the increase side of an account.
    • A. 

      True

    • B. 

      False

  • 4. 
    4.  A credit to a liability account decreases the account balance.
    • A. 

      True

    • B. 

      False

  • 5. 
    5.  Assets are increased on the debit side.
    • A. 

      True

    • B. 

      False

  • 6. 
    6.  Capital is increased on the credit side
    • A. 

      True

    • B. 

      False

  • 7. 
    7.  Liabilities are decreased on the credit side.
    • A. 

      True

    • B. 

      False

  • 8. 
    8.  the basic accounting equation MAY be expressed as A - L = OE
    • A. 

      True

    • B. 

      False

  • 9. 
    9.  The right side of a T account is always the debit side.
    • A. 

      True

    • B. 

      False

  • 10. 
    10.  For every debit there must an equal credit.
    • A. 

      True

    • B. 

      False

  • 11. 
    11.  A debit to one asset account and a credit to another asset account will result in the basic accounting equation being out of balance.
    • A. 

      True

    • B. 

      False

  • 12. 
    12.  The left side of a T Account is always the credit side.
    • A. 

      True

    • B. 

      False

  • 13. 
    13.  Credit means to decrease a liability.
    • A. 

      True

    • B. 

      False

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