Question 1 of 10
10.0/ 10.0 Points
Since a particular journal entry has equal debits and credits, this entry must be correct.
A. True
B.
False
Answer Key:
False
Question 2 of 10
10.0/ 10.0 Points
A purchase of an asset for immediate consumption that will not be paid for until next month
would cause liabilities to increase and stockholders’ equity to decrease this month.
A. True
B.
False
Answer Key:
True
Question 3 of 10
10.0/ 10.0 Points
A debit to the Dividends account would indicate an increase in expenses.
A. True
B.
False
Answer Key:
False
Question 4 of 10
10.0/ 10.0 Points
Transactions are recorded in the journal in chronological order.
A. True
B.
False
Answer Key:
True
Question 5 of 10
10.0/ 10.0 Points
Which of the following statements about the accounting equation is not true?
A.A transaction may add to both sides of the equation.
B.A transaction may add to two items on the same side of the equation.
C.A transaction may transfer between the terms on one side of the equation and
have no effect on the other side of the equation.
