True or false
A journal shows in one place all the changes in a single account
False
Accounts payable accounts are increased with debit
False
Common accounting practice is to record withdrawals as debits directly in the owner's capital account.
False
Decreases to liability accounts are recorded on the credit side
False
Each liability account has a normal debit balance
False
Errors discovered before entry is posted may be corrected by ruling through the item
False
If the payment of cash for rent was journalized and posted in error as a debit to Miscellaneous Expense instead of Rent Expense, the correcting entry will include a credit to Cash
False
The accounting equation is most often stated as assets + liabilities = owners equity
False
The left side of an asset account is the credit side because asset accounts are the left side f the accounting equation
False
The only use for the post ref column of a journal and general ledger is to indicate which entries in the journal still need to be posted of posting is interrupted
False
The posting reference should always be regarded in the journals post ref column before amounts are recorded in the ledger
False
The steps for posting are to write the date, the journal page number, the amount, and the balance
False
The two steps for opening an account are writing the account title are recoding the balance
False
To summarize withdrawal information separately from the other records, owner withdrawal transactions are recorded in the owner's capital account.
False
When cash is paid for supplies, the supplies account is debited.
False
A drawing account is increased by debits and decreased by credits
True
A group of accounts is called a ledger
True
After each transaction the accounting equation must remain in balance
True
All corrections for posting errors should be made in a way that leaves no question as to the correct amount
True
Asset accounts decrease on the credit side
True
Cash is increased with a debit
True
Each transaction changes the balances in at least two accounts.
True
If the previous account balance and the current entry posted to an account are both debits, the new account balance is a debit.
True
Increases in expense accounts are recorded as debits because they decrease the owner's capital account.
True
Prepaid insurance is decreased with a credit
True
The account number is placed in the post ref column of the journal as the last step in posting procedure
True
The balance of an account increases on the same side as the normal balance side
True
The cash account is the first asset account and is numbered 110
True
The normal balance side of an accounts receivable account is a debit
True
The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is known as file maintenance
True
Utilities expense is increased with a debit
True
When adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
True
When posting is complete, the Post. Ref. column in the General Journal is completely filled in with account numbers
True
A list of accounts used by a business is a chart of accounts.
Trye
Each asset account has a normal credit balance
false
Payments for advertising, equipment repairs, utilities, and rent are liabilities.
false
a transaction for a sale of goods or services results in a decrease in owners equity
false
a withdrawal is an expense
false
an amount recorded on the right side of a T account is a debit
false
business ethics are the principles of right a wrong that guide an individual in making decisions
false
An expense is a decrease in owner's equity resulting from the operation of a business.
true
Keeping separate financial records for a business and for its owner's personal belongings is an application of the Business Entity accounting concept.
true
Withdrawals are assets taken out of a business for the owner's personal use.
true
an accounting device used to analyze transaction is a T account
true
detailed information about changes in a owners equity is needed by owners an managers to make sound business decisions
true
the most common type withdrawal by an owner from a business is the withdrawal of cash
true
when a owner withdraws cash from the business, the transaction affects both assets and owners equity
true
when items are brought and paid for at a future sate, another way to say this is to say these items are. bought on account
true
when two asset accounts are changed in a transaction, there must be an increase and a decrease
true
