Final answer:
The statement is false because purchase orders do not directly impact accounts in the general ledger. They are internal documents authorizing purchases, and financial impact occurs upon receipt of ordered goods or services, crediting Accounts Payable and debiting Inventory.
Step-by-step explanation:
The statement that purchase orders increase (credit) the Purchase Order account and decrease (debit) the A/P (Accounts Payable) account is false. In accounting, a purchase order itself does not immediately affect the financial statements. Instead, it is simply a document that authorizes a purchase and once the goods or services are received, the inventory account is debited, and the A/P account is credited. The Purchase Order account is not part of the general ledger, as it is more of an internal tracking mechanism for purchases made rather than a record of actual financial transactions.