Chapter 02 Analyzing and Recording Transactions True/False Questions 1. The first step in the processing of a transaction is to analyze the transaction and source documents 2. Preparation of a trial balance is the first step in the analyzing and reconding process True False 3. Source documents provide evidence of business transactions and are the basis for accounting extr 4. Items such as sales tickets, bank statements, checks, and purchase orders are source documents True False 5. An account is a record of increases and decreas in a specific asset, liability, equity, revenue, or expense True False 6. A customer's promise to pay is called an account payable to the seller True False 7. Withdrawals by the owner are a business expense 5. The chart of accounts is a list of all the acts sood by a company and includes an identification number aged to each True False 9. An account balance is the difference between the debits and credits for an account including any beginning balance True Fabe 10. Debit means the right side of an account True Fa 11. In a double-entry accounting system, the total amount debited must always equal the total amount credited True False 12. Increases in liability accounts are reconded a debts True False 13. Debits increase asset and expose accou True False 14. Credits always increase account balances True Fa 15. Crediting an expense and True False