When a company uses the double entry method the total

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Chapter 14 / Exercise 11
Fraud Examination
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18. When a company uses the double-entry method, the total dollar amount of debits recordedmust equal the total dollar amount of credits recorded, but the number of debit and credit entries may differ. True False
19. If ledger accounts are maintained in three-column, running balance form, the journal should be maintained in the same format.
20. The general ledger is sometimes called the book of original entrybecause it is the accounting record where transactions are first recorded.
21. Each business transaction is initially recorded in a journal and later transferred to the appropriate accounts in the general ledger.
22. The matching principle refers to the relationship between revenues and expenses. True False
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Fraud Examination
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Chapter 14 / Exercise 11
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Chapter 03 - The Accounting Cycle: Capturing Economic Events23. An increase in a liability is recorded by a credit; an increase in owners' equity by a debit.
24. Revenues increase owners' equity and are, therefore, recorded by crediting the revenues account.
25. The accrual basis of accounting recognizes expenses only when they are paid.
26. Every transaction which affects an income statement account also affects a balance sheet account. True False
27. A trial balance that balances provides proof that all transactions were correctly journalizedand posted to the ledger.
28. A trial balance proves that equal amounts of debits and credits were posted to the ledger.
29. Dividends are an expense to a corporation and appear on the income statement.
30. A CEO or CFO associated with fraudulent financial reporting could be fined but not imprisoned under the Sarbanes Oxley Act. True False
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Chapter 03 - The Accounting Cycle: Capturing Economic Events31. "I was just following orders" is an acceptable defense if you committed an unethical action during an audit.
Multiple Choice Questions32. Sally Smith had expenses of $800 in June which she paid in July. She declared these expenses on her June income statement. By doing this, she is following the accounting principle of:
33. The price of the goods sold or services rendered during a given accounting period is called:

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