Question 1 16 pts A company often pays insurance that will provide the company insurance coverage for 6 months or longer. When the company pays for the insurance, the account that is debited is called a prepaid expense. This is an asset, not an expense. Why? It is the same as cash It will benefit the company in future periods, and therefore has not been used up It has been used up and should be an expense Question 2 17 pts AT account always has a left side and a right side A Debit side and a credit side An increase side and a decrease side All of the above Question 3 17 pts Cash is an asset. Assets are on the left side of the accounting equation. The left side is called the debit. Therefore, the increase side of cash is a Debit Credit D Question 4 17 pts Accounts payable is a liability. Liabilities are on the right side of the accounting equation. The right side is called the credit. Therefore, the increase side of accounts payable is a Debit Credit Question 5 17 pts Revenues and Capital are on the right side of the accounting equation. The right side is called the credit side. Therefore, the increase side of revenues and capital is Debit Credit Question 6 16 pts Even though Expenses and owner's drawing are on the right side of the accounting equation, they do not increase on the credit side. Why? They have a negative impact on owner's equity: therefoer they work the opposite and increase with a debit There is no logical reason