C 557 Wk 2 Chapter 2,3 Quiz - All Possible Questions

C 557 WK 2 Chapter 2,3 Quiz - All Possible QuestionsAC

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ACC 557 WK 2 Chapter 2,3 Quiz - All Possible Questions

TRUE-FALSE STATEMENTS

    1.     A new account is opened for each transaction entered into by a business firm.

    2.     The recording process becomes more efficient and informative if all transactions are recorded in one account.

    3.     When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

    4.     An account is often referred to as a T-account because of the way it is constructed.

    5.     A debit to an account indicates an increase in that account.

    6.     If a revenue account is credited, the revenue account is increased.

    7.     The normal balance of all accounts is a debit.

    8.     Debit and credit can be interpreted to mean increase and decrease, respectively.

    9.     The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

  10.     A credit balance in a liability account indicates that an error in recording has occurred.

  11.     The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.

  12.     Revenues are a subdivision of retained earnings.

  13.     Under the double-entry system, revenues must always equal expenses.

  14.     Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.

  15.     Business documents can provide evidence that a transaction has occurred.

  16.     Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.

  17.     Transactions are entered in the ledger accounts and then...