accounting 2 chapter 1 true/false

true

a business within many daily transactions may use special journals

true

a departmental purchases journal should contain a purchases debit column for each department

false

a discount is calculated on the original purchase price, even if a purchase return or allowance has been granted

true

a purchases discount is usually stated as a percentage

true

amounts in the general debit and general credit columns of a cash payments journal are posted individually

true

an owner's equity account has a normal credit balance

true

decreases in expense accounts are recorded on the credit side

false

decreases in revenue accounts are recorded on the credit side

false

expense accounts have normal credit balances

true

increases in asset accounts are recorded on the debit side

false

increases in liability accounts are recorded on the debit side

false

increases in owner's equity accounts are recorded on the credit side

true

liability accounts have normal credit balances

false

revenue accounts have normal debit balances

false

the accounting equation may be stated as assets= liabilities

true

using a check as the source document for a cash payment transaction is an application of the accounting concept objective evidence