Chapter 1-8 Accounting True or False Questions
True
If the previous account balance and the current entry posted to an account are both credits, the new account balance is a credit.
True
Temporary accounts are used to accumulate information until it is transferred to the owner's capital account.
False
The drawing account is a permanent account.
True
The formula for calculating net income is total revenue minus total expenses.
True
The source document for an electronic funds transfer is a memorandum.
False
A balance sheet reports financial information for a period of time.
False
A transaction for the sale of goods or services results in a decrease in owner's equity.
False
A transaction recorded in a journal is not considered a permanent record.
True
Adjusting entries must be posted to the general ledger accounts.