Accounting I - Chapter 2 Test b

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Cash is increased with a credit.

To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the ownerвЂ™s capital account.

Prepaid Insurance is decreased with a credit.

The normal balance side of an accounts receivable account is a credit.

A drawing account is decreased by debits and increased by credits.

Increases in expense accounts are recorded as debits because they decrease the ownerвЂ™s capital account.

The left side of an asset account is the credit side because asset accounts are on the left side of the accounting equation.

Advertising Expense is increased with a debit.