2.4 Learning Objective 2-4
1) The double-entry system of accounting records the dual effects of transactions on the entity.
2) At the end of the period, the difference between the total credits and the total debits is the balance in the account.
3) The left hand side of a T account is the debit side and the right hand side is the credit side.
4) An account with a normal debit balance is most often an asset or revenue account.
5) Accounts receivable is increased with a credit.
6) Assets, revenues, and dividends are all increased by debits.
7) Common Stock and Retained Earnings are increased by debits.
8) If the sum of the credits to an account exceed the sum of the debits to the account, the account will have a credit balance.
9) The left side of a T-account is always the:
A) increase side.
B) decrease side.
C) debit side.
D) credit side.
10) An important rule to remember when working with T accounts is:
A) when you debit an account, you are entering an amount of the right-hand side on the T account.
B) an increase to accounts payable will be recorded as a debit.
C) to credit an account means to enter an amount on the right-hand side of the T account.
D) the debit side of a T account is on the right-hand side of the T account for assets and expenses.