All accounting transactions are recorded in the accounting equation
False
The total of amounts on the left side of the accounting equation must always equal the total amounts on the right side
True
A record summarizing all the information pertaining to a single item in the accounting equation is known as a (n)
account
An accounting device used to analyze transactions is called a (n)
T account
In a T account, amounts recorded on the left side are called
debits
The side of the account that is increased is called the
normal balance
The owner's capital account is on the _______________ side of the accounting equation and has a normal __________ balance.
right; credit
Account balances increase on the ________________ side of an account.
normal balance
A list of accounts used by a business is called a (n)
chart of accounts
If one account is increased, another account on the same side of the equation
must be decreased
Every transaction must affect accounts on both sides of the accounting equation
False
A questions that is not asked each time a transaction is analyzed into its debit and credit parts.
What is the new balance of each account?
A business paid cash for supplies, how is this transaction recorded?
credit cash, debit supplies
Revenue increases owner's equity and increases
cash
A business sold services on account. How is this transaction recorded?
debit accounts receivable, credit sales
A business bought supplies on account. How is this transaction recorded?
debit supplies, credit accounts payable
A business paid cash on account. This transaction is recorded by
debit accounts payable, credit cash
A business received cash from owner as an investment. This transactions is recorded by
debit to cash, credit to capital
A business paid cash for insurance. How is this transaction recorded?
credit cash, debit insurance
A business received cash on account. How is this transaction recorded?
debit cash, credit accounts receivable