Louisiana State University, Shreveport ACCT 701 Module 7 Quiz TRUE/FALSE QUESTIONS 1)Credits are entries on the left side of a T-account

Louisiana State University, Shreveport

ACCT 701

Module 7 Quiz

TRUE/FALSE QUESTIONS

1)Credits are entries on the left side of a T-account.

1. Credits decrease liability, stockholders’ equity, and revenue accounts.
2. A journal contains a chronological record of the transactions of a business. “Journalizing” is the process of entering a transaction in a journal
3.  “Posting” is the process of transferring information recorded in the journal to the proper places in the ledger.
4. The left side of any account is the credit side
5. Revenues, liabilities, and capital stock accounts are increased by debits.
6. If the trial balance has equal debit and credit totals, it cannot contain any errors.
7. Closing entries are necessary to reduce the balances of revenue, expense, and dividends accounts to zero

so they are ready to receive data for the next accounting period.

8. The cash basis is more generally accepted than the accrual basis because it provides a better matching of revenues and expenses.
9. The accumulated depreciation account is a contra-asset account that shows the amount of depreciation

for the current year only.