96%(156)150 out of 156 people found this document helpful
This preview shows page 1 - 3 out of 4 pages.
Question 1 of 1010.0/ 10.0 PointsSince a particular journal entry has equal debits and credits, this entry must be correct.A. TrueB. FalseAnswer Key: FalseQuestion 2 of 1010.0/ 10.0 PointsA 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. TrueB. FalseAnswer Key: TrueQuestion 3 of 1010.0/ 10.0 PointsA debit to the Dividends account would indicate an increase in expenses.A. TrueB. FalseAnswer Key: FalseQuestion 4 of 1010.0/ 10.0 PointsTransactions are recorded in the journal in chronological order.A. TrueB.
FalseAnswer Key: TrueQuestion 5 of 1010.0/ 10.0 PointsWhich 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.