) 5) 1) An account is a detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a specic period. A. True or B. False A payment of an expense in advance is called a prepaid expense. A. True or B. False An accounts receivable requires the business to pay cash in the iture. A. True_ or B. False The account title used for recording the payment of rent in advance for an office building is. A) Prepaid Rent C) Rent Revenue ; B) Rent Payable D) Rent Expense Which of the following accounts is an asset? A) Salaries Expense; B) Accounts Payable C) Service Revenue; D) Prepaid Expense 6) Which of the following is a liability account? A) Prepaid Advertising; B) Cash C) Building; D) Unearned Rent 7) Owner, Capital is a separate account in the category of the accounting equation. A) equity; B) asset; C) liability; D) revenue; E) None of the above 8) Companies use a ledger to show all of the increases and decreases in each account along with their balances. . A. True or B. False 9) The system of accounting in which every transaction affects at least two accounts is called the double-entry system. A. True or B. False 10) Debit refers to the right side of the T-account; and credit refers to the left side. A. True or B. False 11) The left side of the T-account for Accounts Receivable is the debit side and the left side of the T-account for Accounts Payable is the credit side. A. True or B. False 12) An asset account is increased by a debit. A. True or B. False 13) Which of the following accounts decreases with a debit? A) Accounts Receivable; B) Notes Payable; C) Cash; D) Rent Expense 14) All asset accounts and equity accounts increase with a debit. A. True or B. False