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Question 4 of 1010.0/ 10.0 PointsEvery transaction always affects two or more accounts in a double-entry accounting system.A. TrueB. FalseAnswer Key: TrueQuestion 5 of 100.0/ 10.0 PointsA purchase of land or equipment for cash would cause total assets to increase by the cost of the land or equipment.Question 6 of 1010.0/ 10.0 PointsLiabilities represent claims against the company’s assets and may be in the form of accounts payable or notes payable.Question 7 of 1010.0/ 10.0 PointsA company purchased equipment for $1,000; the journal entry to record this purchase is:
Question 8 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.D.A transaction may subtract from both sides of the equation.Answer Key: BQuestion 9 of 1010.0/ 10.0 PointsEven though an expense is recognized on the income statement, it may not require an equivalent outlay of cash in the same period.Question 10 of 1010.0/ 10.0 PointsAccount numbers are entered in the posting reference column of the two-column general journal at the time the transactions are recorded in the ledger accounts.
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Double-entry bookkeeping system, credit Equipment, Doug Equipment Company