Credits are entries on the left side of a T-account

Credits are entries on the left side of a T-account.

True

False

Question 2

(T / F) Credits decrease liability, stockholders’ equity, and revenue accounts.

True

False

Question 3

(T / F) A journal contains a chronological record of the transactions of a business. “Journalizing” is the process of entering a transaction in a journal.

True

False

Question 4

(T / F) “Posting” is the process of transferring information recorded in the journal to the proper places in the ledger.

True

False

Question 5

(T / F) The left side of any account is the credit side.

True

False

Question 6

(T / F) Revenues, liabilities, and capital stock accounts are increased by debits.

True

False

Question 7

(T / F) If the trial balance has equal debit and credit totals, it cannot contain any errors.

True

False

Question 8

(T / F ) Closing entries are necessary to reduce the balances of revenue, expense, and Dividends accounts to zero so they are ready to receive data for the next accounting period.

True

False

Question 9

(T / F) The cash basis is more generally accepted than the accrual basis because it provides a better matching of revenues and expenses.

True

False

Question 10

(T / F) The accumulated depreciation account is a contra-asset account that shows the amount of depreciation for the current year only.

True

False

Here’s the SOLUTION

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