1) The accounting cycle begins with analyzing transactions. a) True b) False 2) Journal entries are recorded after preparing T-accounts. a) True b) False 3) An increase in a liability is recorded by a debit. a) True b) False 4) An increase in revenue is recorded with a credit. a) True b) False 5) T-accounts are used to summarize all accounts in the journal. a) True b) False 6) The accounting cycle ends with the preparation of T-accounts. a) True b) False 7) Transactions are first recorded in the journal. a) True b) False 8) Amount entered on the left side of an account, regardless of the account title, are called credits. a) True b) False 9) A debit always means an entry on the left side of an account. a) True b) False 10) Unearned Revenues are classified as an assets. a) True b) False 11) A debit means that an assets account has been increased. a) True b) False 12) When a withdrawal is made, the Owner's Withdrawals account is debited and cash credited. a) True b) False 13) When a company hires a new employee, a financial activity takes place. a) True b) False 14) Recording the amount of Php4,125.00 as Php41,250.00 is an example of good posting. a) True b) False 15)  The Land and Building accounts may be combined into one account. a) True b) False

Accounting Cycle: True or False

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