66. Prepaid Insurance is an expense account which is used for recording expenses that have been paid in advance. True 67. Because they decrease equity, withdrawals made by a business are credited to his/her withdrawals account. True False 68. Asset accounts normally have credit balances and expense accounts normally have debit balances. True False 69. The normal balance of an account refers to the debit or credit side where increases are recorded. True 70. The chart of accounts is a list of all the accounts used by a company. True 71. Purchasing supplies on credit increases assets decreasing liabilities. True False 72. Credits to accounts are always increases. True False 73. To credit an expense account to decrease it. True False 74. Increases in liabilities are recorded as debits. True False 75. Debits to accounts are normally decreases. True 76. All increases and decreases in cash are not necessarily recorded in the Cash account. True 77. A revenue account normally has a debit balance. True False 78. Double-entry accounting means that every transaction affects and is recorded in at least two accounts. True False 79. Debits increase asset and expense accounts. True False 80. The accounting equation can be expressed as liabilities = assets - equity. True False 81. In a double-entry accounting system, total debits must always equal total credits. True 82. The left side of a T-account is always the credit side, while the right side is always the debit side. True False 83. The accounting equation is expressed as assets = liabilities - equity. True 84. A T-Account is a formal account frequently used in business. True False 85. An account balance is the difference between the increases and decreases recorded in an account. True False
66. Prepaid Insurance is an expense account which is used for recording expenses that have been paid in advance. True 67. Because they decrease equity, withdrawals made by a business are credited to his/her withdrawals account. True False 68. Asset accounts normally have credit balances and expense accounts normally have debit balances. True False 69. The normal balance of an account refers to the debit or credit side where increases are recorded. True 70. The chart of accounts is a list of all the accounts used by a company. True 71. Purchasing supplies on credit increases assets decreasing liabilities. True False 72. Credits to accounts are always increases. True False 73. To credit an expense account to decrease it. True False 74. Increases in liabilities are recorded as debits. True False 75. Debits to accounts are normally decreases. True 76. All increases and decreases in cash are not necessarily recorded in the Cash account. True 77. A revenue account normally has a debit balance. True False 78. Double-entry accounting means that every transaction affects and is recorded in at least two accounts. True False 79. Debits increase asset and expense accounts. True False 80. The accounting equation can be expressed as liabilities = assets - equity. True False 81. In a double-entry accounting system, total debits must always equal total credits. True 82. The left side of a T-account is always the credit side, while the right side is always the debit side. True False 83. The accounting equation is expressed as assets = liabilities - equity. True 84. A T-Account is a formal account frequently used in business. True False 85. An account balance is the difference between the increases and decreases recorded in an account. True False
Downloadable-Test-Bank-for-Fundamental-Accounting-Principles-Canadian-14th-Edition-Larson-1.docx