Now, here is a quick exercise on the review of some important terms. In each of the following statements, indicate if the statement is true or false, and if it is false, explain briefly why.

1. A credit to a ledger account refers to the entry of an amount on the right side of the account. 2. The left-hand side of an account is used in recording debits and the right-hand side for recording credits...in all kinds of accounts. 3. If the number of debit entries in an account is greater than the number of credit entries, the account will have a debit balance. 4. Liability accounts should only be credited and never debited. 5. When making a general journal entry, there can only be one debit and one credit. 6. A business that is profitable and liquid will have more accounts with credit balances than with debit balances. 7. Every transaction is recorded by equal dollar amounts of debits and credits. 8. When a company uses the double-entry method, the total dollar amount of debits recorded must equal the total dollar amount of credits, but the number of debit and credit entries may differ. 9. An increase in liability is recorded by a credit; an increase in owners' equity by a debit.