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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Debits and Credits

True/False Questions


1	The accountant keeps a separate record for each asset, liability, and owner`s equity item.
		A)	True
		B)	False


2	The T account allows increases and decreases to be separated and recorded on different sides.
		A)	True
		B)	False


3	Increases in assets are recorded on the debit side of an account.
		A)	True
		B)	False


4	Decreases in assets are recorded on the left side of an account
		A)	True
		B)	False


5	The owner`s beginning investment is entered as a debit in the owner`s capital account.
		A)	True
		B)	False


6	Increases in liabilities are recorded on the debit side of the account
		A)	True
		B)	False


7	A cash payment by the business is recorded as a debit entry in the Cash account
		A)	True
		B)	False


8	Decreases in liabilities are credited to the liability account.
		A)	True
		B)	False


9	An increase in the owner`s investment is recorded by crediting the owner`s capital account.
		A)	True
		B)	False


10	Revenue accounts are increased by credits
		A)	True
		B)	False


11	An entry on the left side of any account is called a debit
		A)	True
		B)	False


12	A reduction in the equity of the owners is recorded by making a debit entry in the owner`s Capital account.
		A)	True
		B)	False


13	The receipt of cash is recorded by a debit entry to the Cash account.
		A)	True
		B)	False


14	Increases in expense accounts are recorded by credit entries.
		A)	True
		B)	False

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