[jerky_boyz]

Can someone please help me with the following true or false questions. I am having a bit of a problem with them. I would appreciate the help in solving them. Thanks


1. The left side of every liability account is the debit side.

2. Revenues are increased with debits.

3. Balance sheet accounts are also called temporary accounts.

4. The process of transferring information in journal entries to T-accounts in the ledger is called journalizing.

5. The income summary account is closed to the retained earnings account.

6. A firm generally recognizes assets at the price it paid to acquire the assets.

7. The difference between the gross sales value of inventory sold and its cost is called gross profit.

8. Dividends are distributions of earnings to shareholders and are considered an expense to the company.

9. Contra-asset accounts have credit balances and are an offset to a related asset account.

10. Journalizing transactions is the first step in the accounting cycle.

11. Firms use accrual-basis accounting because it provides information about future cash flows that is not available under the cash method.

12. The relevance criteria states that information about an item is representational, faithful, verifiable and neutral.

13. Revenue recognition refers to the point in time at which revenue should be reported on the statement of earnings.

14. The matching concept requires that firms recognize both the revenue, and the costs required to produce the revenue (expenses) when cash is received and paid.

15. A deferred expense represents an obligation to provide goods or services to customers in the future.

16. Income statements that provide greater detail and breakdown of costs by category are referred to as multiple step.

17. GAAP requires two items to be shown after the computation of tax expense: discontinued operations and extraordinary items.

18. When both the value and the assurance of sale can be estimated at the time of production a firm recognizes revenue at that point.

19. The cost recovery and completed contract methods are two examples of revenue recognition being postponed until the cash from a sale is collected.

20. Comprehensive income is the change in equity of a firm due to transactions and other events and circumstances from nonowner sources.

[CaptainForest]

1) True
2) False
3) False
4) False
5) True
6) True
7) True
8) False
9) True
10) False

What do you think the rest of the answers are?

[jerky_boyz]

Thanks for the help. I was wondering about the answer for #2 and #4. I thought the answer for them would be true.
As for the rest of them.
11) F
12) F
13) T
14) F
15) F
16) T
17) F
18) F
19) T
20) T

I would appreciate it if you could let me know if I was on the right track. Thanks

[CaptainForest]

2. Revenues are increased with debits.

When you make a sale, the journal entry is
Dr. Cash 100
Cr. Sales 100

So to increase sales, you credit it. Therefore the statement is False


4. The process of transferring information in journal entries to T-accounts in the ledger is called journalizing.

From the best of my knowledge, journalizing is when you record what happened. That is, I say you made a $100 sale, then you would:

Dr. Cash 100
Cr. Sales 100

Record it in the general ledger. Therefore, False

[eniitana]

1. F
2. T
3. T

[morgaine300]

eniitana - do not answer people's homework for them, especially with no explanation. No one learns that way. (This also could have easily been a test.)

Also, don't pull up threads that are three years old please.

And if you're going to bother trying to answer something, at least know what you're doing, and it's obvious you don't. In fact, it looks like you intentionally answered them all the opposite of the original answers given - for what purpose I don't know.

[StevenWoods21]

Statistics can provide excellent support True Or False

[StevenWoods21]

Statistics can provide excellent support true or false