Finance Foundations Unit 5 Flash Cards Mrs. Sorrell.

Finance FoundationsUnit 5 Flash

CardsMrs. Sorrell

DecreaseO A debit to a revenue will __________

the revenue account.

AssetO Prepaid insurance is classified as

a(n) __________.

DebitO To increase an asset you have to

__________.

DebitO A __________ will decrease Accounts

Payable.

increaseO A debit to Utilities Expense will

__________ the expense account.

DebitO The normal balance of the drawing

account is __________.

increaseO The normal balance is the __________

side of the account.

CreditO An accounts receivable is decreased

with a __________.

IncreaseO An investment by the owner will

__________ Capital.

creditO To increase Accounts Payable you

must __________ the Accounts Payable account.

debitO The normal balance for Accounts

Receivable is __________.

debitO A __________ will increase the

Drawing account.

debitO An expense has a normal balance of

__________.

liabilityO Anything owed by a company is

considered to be a(n) __________.

increaseO If the owner withdraws money for

personal use, the withdrawal will __________ the Drawing account.

creditO A(n) __________ will cause Capital to

be increased.

decreaseO Credits to Cash will __________ the

Cash account.

capitalO An investment by the owner will

increase __________.

increaseO A debit to rent expense will

__________ the rent expense account.

decreaseO When a customer pays on their

account, this will __________ their balance owed.

assetO Anything of value that is owned is

considered to be a(n) __________.

increase, capitalO Owner investing money into the

company will __________ the __________ account.

decrease, increaseO Cash paid to cover advertising

expense will __________ the cash account and __________ the advertising expense account.

decrease, decreaseO Cash paid on Accounts Payable will

__________ cash and __________ accounts payable.

assetO Accounts Receivable is a(n)

__________.

liabilityO Accounts Payable is a(n) __________.

debitO The normal balance for an asset

account is __________.

debitO The normal balance for drawing

account is __________.

increaseO When an owner withdraws money for

personal use, the drawing account will __________.