Financial and Managerial Accounting: The Basis for Business Decisions, 12/e

Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs

The Accounting Cycle: Capturing Economics Events

True/False Quiz

Please answer all questions


1	If the number of debit entries in an account is greater than the number of credit entries, the account will have a debit balance.
		A)	True
		B)	False


2	If ledger accounts are maintained in three-column, running balance form, the journal should be maintained in the same format.
		A)	True
		B)	False


3	The unit of organization for the journal is the transaction, and the unit of organization for the ledger is the account.
		A)	True
		B)	False


4	A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.
		A)	True
		B)	False


5	A trial balance proves that equal amounts of debits and credits were posted to the ledger and that the arithmetical calculation of account balances was accurate.
		A)	True
		B)	False


6	Net income for a given period will be the same whether determined on the accrual basis or the cash basis of accounting.
		A)	True
		B)	False

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