Write True if the statement is correct               and False if it is not. Write your answers on a separate answer sheet. The left side of the T-account is called the debit. Assets are increased by credit. Assets is equal to the sum of liabilities and owner’s equity.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Directions: TRUE or FALSE. Write True if the statement is correct               and False if it is not. Write your answers on a separate answer sheet.

  1. The left side of the T-account is called the debit.
  2. Assets are increased by credit.
  3. Assets is equal to the sum of liabilities and owner’s equity.
  4. Increases in liability accounts are credited.
  5. Decreases in asset accounts are credited.
  6. An increase in rent expense is a debit by the rules of debit and credit.
  7. Income is increased by credit.
  8. Expenses are increased by debit
  9. Decreases in liability accounts are debited.
  10. Assets, and expense accounts have debit account balances.
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