Accounting IA Sample Multiple Choice Chapter 2- Analyzing Transactions 1. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. b. in two sets of books. c. in a journal and in a ledger. d. first as a revenue and then as an expense. 2. A trial balance proves a. the mathematical equality of debits and credits after the posting process b. the ledger is posted correctly. c. that all transactions have been recorded correctly d. that all transactions have been posted. 3. The left side of an account is a. blank. b. a description of the account. c. the debit side. d. the balance of the account. 4. The normal balance of any account is the a. left side. b. right side c. side which increases that account. d. side which decreases that account. 5. A revenue account a. is increased by debits b. is decreased by credits. c. has a normal balance of a debit. d. is increased by credits. 6. In which of the following types of accounts are decreases recorded by debits? a. asset:s b. liabilities c. expenses d. dividends Page 1 M. Baker