chapter 2

Question 1

A record summarizing all the information affecting a single item in the accounting equation

Answer 1

account

Question 2

An accounting device used to analyze transactions

Answer 2

T account

Question 3

An amount recorded on the left side of an account

Answer 3

Debit

Question 4

An amount recorded on the right side of an account

Answer 4

Credit

Question 5

• on the left side of the accounting equation
• increase on the left, or debit, side of the account

Answer 5

Assets

Question 6

• on the right side of the accounting equation
• Increase on the right, or credit

Answer 6

Liabilities

Question 7

• the side of the account that is increased
• assets have normal debit balances
• liabilities and the owners capital account have normal credit balance

Answer 7

• Normal balance

Question 8

A list of accounts used by a business

Answer 8

Charts of accounts