Howard Burke 7/14/07 ACC100 Jackie Mosely QUIZ1 1. Debit Is the left side of the account.

. Depending on the type of account will determine if the account is increased or decreased. 2. Credit - Is the right side of the account. Depending on the type of account will determine if the account is increase or decreased. 3. The accrual basis of accounting records the effect of each transaction as it occurs. 4. The matching principle is a guide to accounting for expenses which identifies and measures all expenses incurred during the period and matches them against the revenues earned during the same time period. 5. Five major types of accounts are cash, land, accounts payable, capital, and withdrawals. Cash accounts keep a record of the cash effects of transactions. Land accounts keep a record of the cost of land a business owns and uses in its operations. Accounts payable is the oral or implied promise to pay a debt coming from a credit purchase. Capital shows the owners claim to the assets of the business. Withdrawals account for decreases in the owners equity. Normal Balances A. Cash debit B. Land debit C. Accounts payable credit D. Capital credit E. Withdrawals credit Examples of each account Cash - money, bank account balance, paper currency, coins, and checks Land paying 30,000 for a small lot the business will use Accounts payable purchasing office supplies on account Capital - Owner deposits money into business account Withdrawals owner withdraws cash for personal use