Learning Objective 2-2
1) Debit refers to the right side of the T-account and credit refers to the left side.
2) The system of accounting in which every transaction affects at least two accounts is called the double-entry system.
3) An asset account is increased by a debit.
4) The Common Stock account is increased by a debit.
5) The Dividends account is increased by a debit.
6) A liability account is increased by a debit.
7) An account that normally has a debit balance may occasionally have a credit balance.
8) All asset accounts and equity accounts increase with a debit.
9) The balances in the accounts of liabilities and revenues are increased with a credit.
10) The normal balance of an account is the increase side of the account.