1. Assets and liabilities are both

decreased by credits.

True

False

2. The owners 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 + Owners

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

False15

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