chapter2b - Chapter 2b 1. The normal balance of an account...

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Chapter 2b 1. The normal balance of an account is on the side where a decrease in the account is recorded. A. True B. False 2. The dividends account decreases stockholders' equity and is an income statement account like expenses. A. True B. False 3. When a company earns revenues, stockholders' equity increases. A. True B. False 4. The first step in the recording process is to enter the transaction information in a journal. A. True B. False 5. Companies initially record transactions in the general journal in chronological order. A. True B. False 6. An entry that requires more than two accounts is a compound entry. A. True B. False 7. The entire group of accounts maintained by a company is the ledger. A. True B. False 8. Transferring journal entries to the ledger accounts is called journalizing. A. True B. False 9. Companies prepare a trial balance at the end of an accounting period and it is useful in preparing financial statements. A.
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chapter2b - Chapter 2b 1. The normal balance of an account...

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