02 - SOLUTION Problem 2-2

02 - SOLUTION Problem 2-2 - Accounting Period is called the...

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Problem 2-2 Solution – True / False Questions for Chapter 2 T rue or F alse T 1. In a traditional accounting system all entries must be first put in the General Journal. F 2. Entries are posted from the General Journal to the Trial Balance. F 3. The Note Payable account is increased by a Debit entry. T 4. The Equipment account is increased by a Debit entry. F 5. All entries must affect both the Asset side and the Liabilities + Equity side of the accounting equation for the accounting system to stay in balance. T 6. The Inventory account is decreased by a Credit entry. T 7. The Balance Sheet is a point-in-time financial report. F 8. A company’s Accounting Period must always be one month long. T 9. The sequence of steps a company’s accounting system goes through each
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Unformatted text preview: Accounting Period is called the Accounting Cycle. F 10. The largest transaction occurring during the Accounting Period is always entered first in the General Journal. T 11. For each entry in the General Journal, the total dollar amount of the debits and the total dollar amount of the credits must always be equal. F 12. The Balance Sheet is produced from the account balances shown in the General Journal. T 13. The Balance Sheet is produced from the account balances shown in the General Ledger. T 14. The primary reason the accountant prepares a Trial Balance is to determine if the accounting system is in balance....
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