The double-entry system states that each transaction must affect at least two accounts to keep the basic accounting equation in balance and the recording must consist of at least one debit and one credit account, where the debited amount must be equal to the credited amount. * True False Under the cash-basis accounting, revenues are recognized when cash is received, and expenses recognized when cash is paid out. * True False The three steps to record a transaction is to analyze each transaction in terms of its effect on the accounts, enter the transaction information in a journal, and transfer the journal information to the appropriate accounts in the ledger. * True False An advance payment received by a company where the service will be performed in a future date is credited as it increases the company's liabilities. * True False When someone invests $20,000 in a new business, this amount will be debited in Cash Account and Credited in the Personal Liability section in the company's book of accounts.* True False Posting helps to transfer the journal entries to ledger accounts which are comprised of the entire group of accounts maintained by a company. * True False The information provided by the Retained Earnings statement indicates the reasons why retained earnings increased or decreased during the period. If there is a net loss, it is deducted with dividends in the retained earnings statement. * True False Each transaction has a dual effect on the equation. If an asset is increased, there must be a corresponding decrease in another asset, or increase in a specific liability, or an increase in stockholders' equity. * True O False