An increase in an expense causes an increase in Paid 25,000 to suppliers on account.

The
the owner’s equity. False accounts affected are liabilities and owners’
equity. False
Withdrawals of assets from a business by the
owners are considered to be decrease in An owner made an investment, the owners
expense. False capital id debited and cash is credited. False

Billed customer 50,000 for services rendered. In any transaction, the total peso amount of
The type of accounts affected are accounts debit must equal the total peso amount of
receivable and service revenue. True credits. True

Amounts entered on the left side of an account,
regardless of the account title, are called
credits, or charges to the account. False
Investment mode by the owner is recorded as
increase in the owner’s equity account and
revenue account. False
A decrease in revenues is recorded by debit.
True
A credit signifies increases in liabilities,
expenses, capital and revenue and decreases in
assets and withdrawals. False
Office supplies are classified as expenses. False
Accounts receivable is an asset account whose
normal balance is a credit. False
An account balance is an asset account whose
normal balance is a credit. True
A credit entry to an example account will
increase it. False
An entry to accounts payable will be on the left
side of the account if there is an increase and
on the right side of the account if there is an
decrease. False
A trial balance may balance but may not be
correct. True

An account titled unearned revenue is a liability

account. False

The sequence of the account titles in a trial

balance depends upon the size of the accounts
balances. False

A credit always means an entry on the right side

of an account. True

An increase in expense is recorded by debit.

True