Question

1. Assets and liabilities are both

decreased by credits.

True

False

2. The owner’s capital account is

increased by credits.

True

False

3. The ledger is also known as the

book of original entry.

True

False

4. Assets = Liabilities + Owner’s

Capital – Drawings + Revenues –

Expenses is a correct form of the

expanded basic accounting

equation.

True

False

5. Debits should be listed before

credits in journal entries.

True

False15

6. The Drawings account is closed to

the Income Summary account.

True

False

7. Unearned revenue is an example

of a revenue.

True

False

8. If a company purchases goods

FOB shipping point, the

purchasing company will be

responsible for the payment of the

freight costs.

True

False

9. The counting of the inventory

should be done by employees who

are not responsible for either

custody of the inventory or keeping

inventory records.

True

False

10.Proper segregation of accounting

duties eliminates the need for

internal controls.

True

False

Answer 1

1)FALSE.

Assets is decreased by credits and liabilities decrease by debits.(Generally Assets has Debit balance and liabilities has Credit balance) to decrease it we have to do opposite.

2) TRUE

Owner capital is increased by credits. It's a Liability and the liability has credit balance and to increase it further we have to credit it.

3)FALSE

A ledger is also known Book of final entry whereas journal is known as book of original entry.

4) FALSE.

Basic Accounting Equation = Assets = Liabilities + Owners equity.

5) TRUE .

Generally debits should be entered first and then later on the credits should be entered. In order to avoid completexities.

6)FALSE.

Drawings are closed in the owner equity or capital account. And not in the income Summary account.

As per HOMEWORKLIB RULES 1st Four questions should be solved.

If you need any other answers please comment on the answer.