mulptuple choice or True Or False Questions ness help with numbers 16-27

16.T.F. When entering a transaction in the general Journal, it is customary to put credit first and debit second. 17. T. F. The purchase of supplies on account should result in a debit to supplles expense and a credit to accounts payable. 18. Before posting a payment of $5,000 to the Accounts Payable of Solid Company that had $16,000 normal balance. What will be the balance after the posting of the transaction? a. $21,000 b. $11,000 C. $5,000 d. $16,000 e. None of the above. 19. Andrews started a small business with $40,000 cash, Pick-up truck worth $12,000 market value, on the day he opened his shop, and original cost of $18,000. His Owner's capital should be: a. $58,000 Assets and $58,000 Owner's Capital b. $52,000 Assets and $52,000 Owner's capital c. Assets $28,000 and Owner's Capital $52,000 d. Assets $52,000 and Owner's Capital $28,000 e. None of the above. 20. T, F. The rule of double entry book-keeping system applies to both computerized and non-computerized accounting systems. 21. T, F. Full disclosure principle in financial statement reporting tends to negate the principle of consistency in reporting financial events. 22. T. F. Revenue Recognition principle forces companies to recognize revenue in the period in which performance obligation is satisfied. 23.T.F. Materiality principle recognizes the size of an item of error or misstatement that is capable of influencing the decision of the reader of a financial statement. 24. T, F. Timeliness of accounting information is that quality of the information that influences the decision maker before the information loses its relevance. 25. T, F. The Time Period assumption states that the life of a company can be artificially divided into time periods such as yearly, quarterly, or semiannually for reporting purposes. 26. Adjusting entries are made to ensure that: a. Expenses are recognized in the period in which they are incurred b. Revenues are recognized in the period in which services are performed Balance sheet and income statement accounts have correct balances at the end of the period. d. All the responses are correct. e. None of the responses above is correct. 27. T, F. Adjustments to Unearned Revenue account at the end of the period, should decrease liability and increase revenue account. C