1. Assets and liabilities are both decreased by credits. True False 2. The owner's capital account is increased by credits. True False 3. The ledger is also known as the book of original entry. True False 4. Assets = Liabilities + Owner's Capital - Drawings + Revenues - Expenses is a correct form of the expanded basic accounting equation. True False 5. Debits should be listed before credits in journal entries. True False 6. The Drawings account is closed to the Income Summary account. True False 7. Unearned revenue is an example of a revenue. True False 8. If a company purchases goods FOB shipping point, the purchasing company will be responsible for the payment of the freight costs. True False 9. The counting of the inventory should be done by employees who are not responsible for either custody of the inventory or keeping inventory records. True False 10.Proper segregation of accounting duties eliminates the need for internal controls. True False