1. an accounting device used to analyze transactions is a t account.\n2. an amount recorded on the right…

1. an accounting device used to analyze transactions is a t account.\n2. an amount recorded on the right side of a t account is a debit.\n3. each asset account has a normal credit balance.\n4. each liability account has a normal debit balance.\n5. the balance of an account increases on the same side as the normal balance side.\n6. asset accounts decrease on the credit side.\n7. each transaction changes the balances in at least two accounts.\n8. a list of accounts used by a business is a chart of accounts.\n9. when cash is paid for supplies, the supplies account is increased by a credit.\n10. common accounting practice is to record withdrawals as debits directly in the owner’s capital account.\n11. the left side of an asset account is the credit side, because asset accounts are on the left side of the accounting equation.\n12. a drawing account is increased by debits and decreased by credits.\n13. increases in expense accounts are recorded as debits, because they decrease the owner’s capital account.\n14. the normal balance side of an accounts receivable account is a debit.\n15. accounts payable accounts are increased with a debit.\n16. utilities expense is increased with a debit.\n17. cash is increased with a debit.\n18. prepaid insurance is decreased with a credit.\n19. to summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner’s capital account.

1. an accounting device used to analyze transactions is a t account.\n2. an amount recorded on the right side of a t account is a debit.\n3. each asset account has a normal credit balance.\n4. each liability account has a normal debit balance.\n5. the balance of an account increases on the same side as the normal balance side.\n6. asset accounts decrease on the credit side.\n7. each transaction changes the balances in at least two accounts.\n8. a list of accounts used by a business is a chart of accounts.\n9. when cash is paid for supplies, the supplies account is increased by a credit.\n10. common accounting practice is to record withdrawals as debits directly in the owner’s capital account.\n11. the left side of an asset account is the credit side, because asset accounts are on the left side of the accounting equation.\n12. a drawing account is increased by debits and decreased by credits.\n13. increases in expense accounts are recorded as debits, because they decrease the owner’s capital account.\n14. the normal balance side of an accounts receivable account is a debit.\n15. accounts payable accounts are increased with a debit.\n16. utilities expense is increased with a debit.\n17. cash is increased with a debit.\n18. prepaid insurance is decreased with a credit.\n19. to summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner’s capital account.

Answer

Brief Explanations:

  1. T - accounts are used to analyze transactions in accounting, so it's True.
  2. In a T - account, the right side is a credit, not a debit, so it's False.
  3. Asset accounts have a normal debit balance, not a credit balance, so it's False.
  4. Liability accounts have a normal credit balance, not a debit balance, so it's False.
  5. The balance of an account increases on the side of its normal balance, so it's True.
  6. Asset accounts decrease on the credit side as they have a normal debit balance, so it's True.
  7. Each transaction follows the double - entry system and affects at least two accounts, so it's True.
  8. A chart of accounts is a list of accounts used by a business, so it's True.
  9. When paying cash for supplies, the Supplies account (an asset) is increased by a debit, not a credit, so it's False.
  10. Withdrawals are recorded in a separate drawing account, not directly in the owner's capital account as debits, so it's False.
  11. The left side of an asset account is the debit side, not the credit side, so it's False.
  12. A drawing account (a contra - equity account) is increased by debits and decreased by credits, so it's True.
  13. Expense increases are debited as they reduce owner's capital, so it's True.
  14. Accounts Receivable (an asset) has a normal debit balance, so it's True.
  15. Accounts Payable (a liability) is increased by a credit, not a debit, so it's False.
  16. Utilities Expense (an expense) is increased by a debit, so it's True.
  17. Cash (an asset) is increased by a debit, so it's True.
  18. Prepaid Insurance (an asset) is decreased by a credit, so it's True.
  19. Owner withdrawal transactions are recorded in a drawing account, not in the owner's capital account to summarize separately, so it's False.

Answer:

  1. True
  2. False
  3. False
  4. False
  5. True
  6. True
  7. True
  8. True
  9. False
  10. False
  11. False
  12. True
  13. True
  14. True
  15. False
  16. True
  17. True
  18. True
  19. False