Expense accounts are increased by credits.

True

False

$2$ points

Question $2$

Assets are increased with debits and decreased with credits.

True

False

$2$ points

Question $3$

Assets, liabilities, and stockholders' equity accounts are real or permanent accounts and do not get closed at the

end of the period.

True

False

$2$ points

Question $4$

It is not necessary to post the closing entries to the general ledger.

True

False

$2$ points

Question $5$

Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been

incurred but not recorded.

True

False

$2$ points

Question $6$

The right hand side of a T account is known as a debit and the left hand side is known as a credit.

True

False

$2$ points

Question $7$

FICA tax is a payroll tax that is paid only by employers.

True

False

$2$ points

Question $8$

Federal unemployment taxes are paid by the employer and the employee.

True

False

$2$ points

Question $9$

If the bondholder has the right to exchange a bond for shares of common stock, the bond is called a convertible

bond.

True

False

$2$ points

Question $10$

When the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium.

True

False