The authors discuss several important principles used to measure and record business transactions. Which of the following is an erroneous statement regarding an important principle. The historical cost principle requires transactions to be recorded at their cost - the exchange price at the time the activity occurs. The revenue recognition principle determines when revenue is recorded and reported by a company. Under this principle, revenue is generally recognized in the period in which the company provides services or sells goods to customers. The expense recognition principle requires that an expense be recorded and reported in the same period as the revenue it helped generate. The conservatism principle states that accountants should take care to avoid understating assets or income when preparing the financial statements. Which of the following statements regarding debits and credits is false? Debit an account by adding an amount to the left side of the account. O A credit balance exists when the sum of the credits to an account exceeds the sum of the debits to the account. Debits represent increases and credits represent decreases to an account. In each journal entry, the sum of the debits must equal the sum of the credits. Which of the following statements accurately describes the normal balance of an account. The normal balance of an account is generally a debit balance The normal balance of an account is generally a credit balance. The normal balance of an account in whichever side (debit or credat) is larger. Thus, the normal balance of an account could change based upon transaction amounts recorded in the account The normal balance of an account is a debit it debits increase the account and is a credit if credits increase the account. Which of the following errors is most likely to be detected from a review of the trial balance? O A transaction was not recorded in the journal. O A transaction was recorded in the journal but was not posted to the general ledger. A transactions was recorded in the journal and posted to the ledger and the sum of the debits was not equal to the sum of the credits. O A transaction was recorded in the journal. The journal entry debit amount equals the credit amount. But both amounts are erroneous. Which of the following statements regarding adjusting journal entries is false? O Ali adjusting entries affect at least one income statement account and one balance sheet account Adjusting journal entries are recorded at the end of an accounting period. O cash is never affected by an adjusting journal entry, Cash is frequently affected by an adjusting entry because almost all income statement and balance sheet transactions ultimately impact cash