2.3 - Recording Transactions in T-Accounts

Question 1

Liabilities increase on the ________ side of the T-Account

Answer 1

Credit

Question 2

Owener’s Equity increases on the ________ side of the T-Account

Answer 2

Credit

Question 3

Trial Balance

Answer 3

a list of account balances from the ledger which checks for mathematical accuracy

Question 4

Where should the account balance of liabilities be?

Answer 4

Credit Side

Question 5

Liabilities decrease on the ________ side of the T-Account

Answer 5

Debit

Question 6

Assets increase on the ________ side of the T-Account

Answer 6

Debit

Question 7

Purpose of a Trial Balance

Answer 7

check for mathematical accuracy

Question 8

Assets decrease on the ________ side of the T-Account

Answer 8

Credit

Question 9

Double-Entry Accounting

Answer 9

• at least two accounts are affected in each transaction
• amounts recorded for debit side must be equal to the amount recorded for the credit side

Question 10

Where should the account balance of owner’s equity be?

Answer 10

Credit Side

Question 11

Credit (CR)

Answer 11

R.H.S. of an account

Question 12

Where is the account balance placed?

Answer 12

on the side of the account with the higher total

Question 13

Ledger

Answer 13

a group of (T-)accounts

Question 14

Account Balance

Answer 14

the difference b/w the totals of the two sides of an account

Question 15

Owner’s Equity decreases on the ________ side of the T-Account

Answer 15

Debit

Question 16

Limitation of Trial Balances

Answer 16

1. remains balanced even if record correct value and side BUT in the wrong account
2. still balanced even if skip transaction

Question 17

Debit (DR)

Answer 17

L.H.S. of an account

Question 18

Where should the account balance of assets be?

Answer 18

Debit Side

Question 19

Account

Answer 19

a form in which changes to an item caused by transactions are recorded