Answer True or False

Question 1

After certain types of transactions it is OK for the accounting system to have more Total Assets than Total Liabilities + Owners' Equity.

True

False

Question 2

Asset accounts track the dollar amount of a physical asset and who has claim to that physical asset.

True

False

Question 3

The main purpose of liability accounts is to keep track of non-owners' claims to an organization's assets.

True

False

Question 5

In an accounting system, if Total Assets are not equal to Total Claims-to-Assets, then the Balance Sheet report will simply be relabeled as the UnBalance Sheet report.

True

False

Question 6

The Debit side of an asset account is the left side and the Debit side of a liability account is the right side.

True

False

Question 7

The credit side of all accounts is the right side.

True

False

Question 8

In an accounting system that uses Debits and Credits, only positive numbers will be put into the accounts.

True

False

Question 9

The following is a correct summary of the increase / decrease rules for accounts:> In all Asset accounts, if the amount is placed on the left (debit) side of the account, the balance in the account is increased.> In all Liability accounts and all Equity accounts, if the amount is placed on the right (credit) side of the account, the balance in the account is increased.> In all Asset accounts, if the amount is placed on the right (crebit) side of the account, the balance in the account is decreased.> In all Liability accounts and all Equity accounts, if the amount is placed on the left (dedit) side of the account, the balance in the account is decreased.

True

False

Question 10

The Trial Balance lists all of the individual transactions that were entered into the Asset, Liability, and Equity accounts.

True

False