Game play 02

Assets are increased by debits and liabilities are decreased by credits.

• True

• False

The owner’s capital account is increased by credits

• True

• False

An account will have a credit balance if the total debit amounts exceed the total credit amounts

• True

• False

The ledger is the entire group of accounts maintained by a company

• True

• False

The basic steps in the recording process are (1) to analyze each transaction, (2) to enter the transaction in a journal, and (3) to transfer the journal entry to the appropriate ledger accounts

• True

• False

Transferring journal entries to the ledger accounts is called posting and should be per­formed in chronological order

• True

• False

Assets = liabilities + owner’s capital – drawings + revenues – expenses is a correct form of the expanded basic accounting equation

• True

• False

All economics events are Transactions

• True

• False

When the columns of the trial balance equal each other, it proves no errors occurred in recording and posting

• True

• False

The double-entry system helps ensure the accuracy of the recorded amounts and helps to detect errors

• True

• False