Question

Use T or F to indicate whether each of the following statements is true or false:
1. Repayments of bank loans should be charged to Notes Payable and credited to Cash.
2. Cash payments of accounts payable should be recorded by a debit to Cash and a credit to Accounts Payable.
3. Inventory purchases on account should be credited to Accounts Payable and debited to an expense account.
4. All credit entries are recorded on the right side of accounts and represent decreases in the account balances.
5. Cash collections of accounts receivable should be debited to Cash and credited to Accounts Receivable.
6. Credit purchases of equipment should be debited to Equipment and charged to Accounts Payable.
7. In general, entries on the right side of asset accounts represent decreases in the account balances.
8. Increases in asset and expense accounts should be recorded on the left side of the accounts.
9. Increases in retained earnings are recorded as credits.
10. Both decreases in assets and decreases in liabilities are recorded on the debit sides of accounts.
11. Asset debits should be on the right and liability debits should be on the left.
12. In some cases, increases in account balances are recorded on the right sides of accounts.



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  • CreatedFebruary 20, 2015
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