The primary way of posting a transaction to the ledger is to examine source documents and determine the effect on accounts. True False Revenue Recognition Principle means to recognize expenses with revenues por in the period when the company makes efforts to generate those revenues. True False When a company purchases a piece of equipment, it is recorded as an Asset and the cost of this equipment is allocated to expense throughout its usefut life through a process called Depreciation True False The financial statements are all independent and unique. There is no connection or link between these financial statements whatsoever." True False If you purchased $9,500 of equipment on account, the entry you will record on the journal would be - Debit Cash account $9,500 and Credit Equipment $9,500. True False At the end of the accounting period, the company makes the accounts ready for the next period by closing the temporary accounts and making their balance zero True False A trial balance is always correct and error-free as long as the debit and credit side balances, or in other words, are equal." True False It is more important to record the transactions in chronological order than to arrange the transactions in alphabetical order." True False Prior to journalizing a transaction, it is very important to analyze the transaction to check if it affects the accounts or not. True If I pay for an airline ticket 3 months before the flight takes off, this is considered as a liability by the airline company, but an asset in my books True False Expenses that are paid by the company in advance (before being consumed) are called Accrued Expenses. True False The adjusted trial balance is prepared before the adjusting entries have been journalized and posted." True False If you invest $5,000 in your new business as initial capital, the entry you will record on the journal would be - Debit Cash $5,000 and Credit Equity $5,000.- True False Accrual Basis accounting system does not support the record of revenue only when cash is received, and expense to be recorded only when cash is paid. True False It pay the next months office rent of $7.200 in advance on January 1 this will be recorded as an expense in the journal on January 1 and reduce the equity portion of the company's balance sheet One of the main purposes of a trial barice is to prove that dette credits and helps in the preparation of the financial statements True False if you received 10 movie tickets worth $150 from your customer as a gift and decided to watch the movies with your employees, the entry you will record on the journal would be Debit Entertainment account $150 and Credit Other Revenue $150. True False Periodicity Assumption states that companies should recognize revenue in the accounting period in which services are performed." True One of the benefits of analyzing a financial transaction is that it helps to prevent or locate errors because the debit and credit amounts can be readily compared. True False On December 31. the company owed its employees $2.000 in salaries and wages that will be paid on January 7. This $2,000 is considered as liability according to the company's accounting record as of December 31. True O False