The normal balance is the side where increases in the account are recorded. Hence, Asset accounts are debit accounts, meaning the debits should exceed credits, and liability accounts are credit accounts, meaning credits should exceed debits.* True False Lands, buildings, machinery, equipment, and motor vehicles (that provide service for many years) are recorded as assets, rather than an expense, on the date acquired. * True O False The periodicity assumption states that companies should recognize revenue in the accounting period in which services are performed. * True O False The primary advantages of using a trial balance are that the trial balance will balance even when a transaction is not journalized, a correct journal entry is not posted, or a journal entry is posted twice.* True False Although primary users of Financial Accounting information are the external users and for Managerial Accounting are the internal users; both branches of accounting need to be audited by CPAs. * True False The amount paid for the Utility and Rent by a company is considered as expenses and it is debited as it reduces the owners' equity.* True False Vertical analysis, also called common-size analysis, is a technique for evaluating a series of financial statement data over a period of time. The main purpose is to determine the increase or decrease that has taken place and expressed as either an amount or a percentage. * True False According to the basic accounting equation, if a company has a total asset of $120,000 and total equity of $75,500; the total liabilities of the company is equal to $195,500.* True False