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 The normal balance is the side where increases in the account are recorded. Hence, Asset accounts are debit accounts, meaning the debits should exceed credits, and liability accounts are credit accounts, meaning credits should exceed debits. * True False Lands, buildings, machinery, equipment, and motor vehicles (that provide service for many years) are recorded as assets, rather than an expense, on the date acquired. * True False Each financial transaction must be analyzed in terms of its effect on the two components of the basic accounting equation where both sides of the equation should be equal most of the time. * True False