101) The purchase of office equipment on account would increase an asset and decrease a liability account.
102) The left side of a T-account is always the side that increases the balance of the account.
103) The right side of a T-account is always the debit side.
104) Assets, owners' equity, and expenses are all increased by debits.
105) A credit always decreases an asset account.
106) Expenses increase shareholders equity. That is why they are credits.
107) A dividend account is known as a contra equity account.
108) An expense account is known as a contra equity account.
109) The purchase of office supplies for cash would include a debit to the asset
Office Supplies
and a credit to the asset
Cash.
110) Every accounting transaction involves an increase in at least one account and a decrease in at least one other account.