True or False Use T or F to indicate whether each of the following statements is true or false:

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1. Cash payments of accounts payable should be recorded by a debit to Cash and a credit to Accounts Payable. 2. Repayments of bank loans should be charged to Notes Payable and credited to Cash. 3. Inventory purchases on account should be credited to Accounts Payable and debited to an expense account. 4. In general, all debit entries are recorded on the left side of accounts and represent decreases in the account balances. 5. Cash collections of accounts receivable should be recorded as debits to Cash and credits to Accounts Receivable. 6. Credit purchases of equipment should be debited to Equipment and charged to Accounts Payable. 7. In general, entries on the right side of asset accounts represent decreases in the account balances. 8. Increases in liability and revenue accounts should be recorded on the left side of the accounts. 9. Decreases in retained earnings are recorded as debits. 10. Both increases in assets and decreases in liabilities are recorded on the debit sides of accounts. 11. In some cases, increases in account balances are recorded on the right sides of accounts. 12. Asset debits should be on the right and liability debits should be on the left.