Whether a debit or credit increases or decreases an account’s balance depends on the type of account.

A debit can represent an increase or decrease to an account’s balance.

Assets normally have a credit balance.

A debit increases an asset account’s balance while a credit decreases an asset account’s balance.

The “right side” of an account’s structure is the credit side.

A credit always increases an account’s balance.

A debit increases an expense account’s balance while a credit reduces an expense account’s balance.

Debits and credits are the accounting terms used to identify the left and right sides of an account.

Revenue accounts normally have a credit balance.

Liability and Equity accounts normally have credit balances.

A debit increases a liability account while a credit decreases a liability account.

Expense and drawing accounts normally have a debit balance.

Debits do not always have to equal credits.

All permanent accounts have a normal balance that is either a debit balance or a credit balance.

The “left side” of an account represents the credit side.

Contra asset accounts normally have debit balances.

A debit always increases an account’s balance.

Liability, equity, and revenue accounts normally have a debit balance.

A debit decreases an expense account while a credit increases an expense account.

A debit decreases a revenue account while a credit increases a revenue account.

Temporary capital accounts start each fiscal period with

At the end of a fiscal period, the first closing entry will be to close

If an account starts with the Number 4, it represents a(n)

Which of the following statements is true?

The financial statements of a business entity

A balance sheet is designed to show

The process of transferring information from the journal to the individual general ledger accounts is called

Accounts that are continuous from one accounting period to the next and their balances are carried forward are referred to as

What two types of transactions increase owner’s equity?

In accounting, the terms debit and credit indicate, respectively:

The process of originally recording a business transaction in the accounting records is termed

If expenses exceed revenue during a given fiscal period,

The journal entry to adjust the Prepaid Insurance account is

The journal entry to close the expense accounts is

Which of the following accounts would not appear on the Post-Closing Trial Balance?

In the sequence of procedures performed during the accounting cycle, the financial statements are prepared

Owner’s equity is

Which financial statement is a depiction of the fundamental accounting equation?

The entry to transfer a net loss to the Capital account would include

The entry in a firm’s accounting records for a credit customer’s check that was returned by the bank marked “NSF” would include

The most appropriate form of endorsement of a check for business purposes is

Debits are used to record

The total of the figures on the left side of a Cash account is $25,800. The total of the figures on the right side is $14,100. The balance of this account

Which of the following accounts is not a permanent account?

The account used to record increases in owner’s equity from the sale of services is