classification accounts and double entry system

Assets and liabilities are classified as real accounts.

• True

• False

Every transaction affects at least two accounts in the double-entry system.

• True

• False

The rule for nominal accounts is: Debit the giver, Credit the receiver.

• True

• False

Revenue increases are recorded on the debit side.

• True

• False

The purchase of inventory on credit increases liabilities.

• True

• False

Accounts receivable is classified as a liability.

• True

• False

The double entry system ensures the accounting equation is always balanced.

• True

• False

The cash account is a nominal account.

• True

• False

Income and expenses are part of real accounts.

• True

• False

If you pay rent in cash, rent account is debited.

• True

• False