1-Since financial information is communicated in accounting terms, accounting is said to be the language of business." True or False 2- Certified Public Accountant is a professional designation that a public accountant can cam by passing a written exam and completing a specific amount of work experience. True or False 3-The six major steps of the accounting process are analyzing, recording, classifying, summarizing. reporting, and interpreting. True or False 4-Generally accepted accounting principles are procedures and guidelines to be followed in the accounting/reporting process. True or False 5-The Financial Accounting Standards Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner. True or False 6-An increase in a revenue account may also result in an increase in the accounts receivable account. True or False 7-The flow of data through the accounting information system includes analyzing transactions. journalizing, posting, and preparing a trial balance. True or False 8-Source documents provide objective, verifiable evidence of business transactions. True or False The purpose of a journal is to provide a chronological record of all transactions completed by the business. True or False 10-The chart of accounts includes the account titles in numerical order. True or False 11-It is permissible to enter information about a transaction in the ledger accounts first, before entering the information in the journal. True or False 12-The chart of accounts includes assets, liabilities, and owner's equity accounts only. True or False 13 AT account has three parts: the title, the debit side, and the credit side. True or False 14-To debit an account is to enter an amount on the left side of the account. True or False 15-Prepaid Insurance is an expense account. True or False 16-The sum of the debits must equal the sum of the credits on the trial balance. True or False 17-Liability accounts normally have debit balances. False or True 18 The difference between the footings of an account is called the balance. True or False 19 A credit increases liabilities and owner's equity. True or False 20-Revenues decrease owner's equity. True or False 21-Owner's equity includes four types of accounts: Owner's Capital, Revenues, Expenses, and Owner's Drawing. True or False, 22-Accounting for revenue on a cash basis means that no entry of revenue is made in the account until the cash is received for the services performed. True or False 23-A contra-asset is deducted from the related asset on the balance sheet. True or False 24-The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset. True or False 25-The cost of plant assets less the accumulated depreciation is called the salvage value of the asset. True or False 26-If the total credits exceed total debits in the Income Statement columns of the work sheet, the business has had a net loss. True or False 27-The original cost of an asset less the trade-in or salvage value of an asset equals the depreciable cost of that asset. True or False 28- A contra-asset has a debit balance. True or False 29-The only correct way to change the balance of a ledger account is to make a journal entry. True or False 30-The income statement includes changes in owner's equity resulting from investments or withdrawals of assets by the owner. True or False Page 1 , 31-To close the income summary account with a credit balance, debit the account for its balance and credit the drawing account. True or False 32-The steps involved in handling all of the transactions and events completed during an accounting period, beginning with placing data in a book of original entry and ending with a post-closing trial balance, are referred to collectively as the accounting cycle. True or False 33 The income summary account is an account used only during the closing process. True or False 34 A statement of owner's equity is a statement summarizing all of the changes in owner's equity during a specified period of time. True or False 35-Adjustments at the end of the period are not formally entered in the journal or posted to the accounts. True or False