SF true & false
In an accounting system that uses Debits and Credits, only positive numbers will be put into accounts
true
the sequence of steps a company's accounting system goes through each accounting period is called the accounting cycle
true
After certain types of transaction it is OK for the accounting system to have more Total Assets (stuff) than Total Liabilities + Owners' Equity (claims to stuff)
false
Asset accounts track the dollar amount of a physical asset and who has a claim to that physical asset
false
Entries are posted from the General Journal to the Trial Balance
false
In an accounting system, if Total Assets are not equal to Total Claims-to-Assets, then the Balance Sheet report will simply be relabled as the UnBalance Sheet report
false
The Debit side of an asset account is the left side and the Debit side of a liability account is the right side
false
The Note Payable account is increased by a debit entry
false
The Trial Balance lists all of the individual transactions that were entered into the Asset, Liability, and Equity accounts
false
a company's accounting period must always be one month long
false
a transaction which decrease the retained earnings account must always decrease an asset account to keep the accounting system in balance
false
all entries must affect both the asset side and the liabilities + equity side of the accounting equation for the accounting system to stay in balance
false
the balance sheet is produced from the account balances shown in the general journal
false
the collection of cash from a customer will always result in an increase in the retained earning account
false
the common stock account is decreased by a debit; while the retained earnings account is increased by a debt
false
the common stock account tracks the owners' clami to assets that result from the operation of the business
false
the largest transaction occurring during the accounting period is always entered first in the general journal
false
the retained earnings account is an asset account similar to the inventory account
false
the retained earnings account is increased by a debit and decreased by a credit
false
In a traditional accounting system all entries must be first put in the General Journal
true
The credit side of all accounts is the right side
true
The main purpose of Equity accounts is to keep track of owners' claims to an organization' assets
true
The main purpose of liability accounts is to keep track of non-owners' claims to an organization's assets
true
for each entry in the general journal, the total dollar amount of the debits and the total dollar amount of the credits must always be equal
true
the balance sheet is a point-in-time financial report
true
the balance sheet is produced from the account balances shown in the general ledger
true
the equipment account is increased by a debit entry
true
the inventory account is decreased by a credit entry
true
the payment of wages to employees for work they performed during the current accounting period will result in a credit to the cash account
true
the primary reason the accountant prepares a trial balance is to determine if the accounting system is in balance
true
the retained earnings account is similar to the common stock account. in that they are both owners' claim-to-assets
true
the retained earnings account tracks the owners' claim to assets that result from the operation of the business
true
when a transaction increases a company's accounts receivable account the retained earnings account must be decreased to keep the accounting system in balance
false
