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Question 9 of 1010.0/ 10.0 PointsThe primary function of the general ledger is to store transactions by account classification and to provide a balance of each account.A. TrueB. FalseAnswer Key: TrueQuestion 10 of 1010.0/ 10.0 PointsHorizontal analysis shows the percentage that each item in a financial statement is of some significant total such as total assets or sales.
Question 1 of 1010.0/ 10.0 PointsExpense accounts usually have debit balances and show the cost associated with producing revenue during an accounting period.Question 2 of 1010.0/ 10.0 PointsAll of the accounts of a specific business enterprise are referred to as a ledger.Question 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 PointsAssets are recorded at cost for accounting purposes because cost is subjective and market value is objective.Question 5 of 1010.0/ 10.0 PointsThe Office Equipment account normally has a credit balance.Question 6 of 1010.0/ 10.0 PointsA company purchased equipment for $1,000; the journal entry to record this purchase is:
Question 7 of 1010.0/ 10.0 PointsA purchase of land or equipment for cash would cause total assets to increase by the cost of the land or equipment.A. TrueB. FalseAnswer Key: FalseQuestion 8 of 1010.0/ 10.0 PointsIf $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business: Question 9 of 1010.0/ 10.0 PointsA journal aids in the division of labor by allowing one person to journalize entries while another individual may post these entries.