Final answer:
1. True. A trial balance can be in balance if the total debits equal the total credits, but still be incorrect if there are errors in the individual account balances.
2. False. Debit and credit columns are not found on financial reports. They are used in the general ledger to record transactions.
3. True. In double-entry bookkeeping, every transaction affects at least two accounts, with the sum of all debits equaling the sum of all credits.
4. False. Ledger pages are typically numbered sequentially for reference, not like in a textbook.
5. False. Withdrawals are listed in the credit column of the trial balance, not the debit column.
6. True. The rules of debit and credit have remained consistent for centuries in accounting.
7. True. Withdrawals decrease the owner's equity and are therefore recorded as a debit.
8. False. An expense does not create a liability. Expenses decrease owner's equity.
9. True. Transaction analysis charts, such as T-accounts, are commonly used in business to analyze and record transactions.
10. False. A shift in assets means there is a change in the composition or value of assets, not necessarily the total.
11. False. A debit can mean an account is increasing or decreasing, depending on the type of account.
12. True. The chart of accounts is a list of all the accounts used by a company and helps in locating and identifying accounts quickly.
13. True. In an account, the right side is the credit side, where increases are recorded.
14. True. The statement of owner's equity is typically prepared after the balance sheet and shows the changes in the owner's equity during a specific period.
15. False. A trial balance is a preliminary step in the accounting cycle and is prepared before the financial statements.
16. False. Credits decrease revenue accounts, while debits increase them.
17. False. Credit does not necessarily mean something good or positive in the context of accounting.
18. False. Withdrawals are not listed on the balance sheet. They are accounted for separately in the statement of owner's equity.
Step-by-step explanation:
This response provides true or false answers to statements about accounting concepts, such as the trial balance, debit and credit columns, double-entry bookkeeping, withdrawals, and more.
1. True. A trial balance can be in balance if the total debits equal the total credits, but still be incorrect if there are errors in the individual account balances.
2. False. Debit and credit columns are not found on financial reports. They are used in the general ledger to record transactions.
3. True. In double-entry bookkeeping, every transaction affects at least two accounts, with the sum of all debits equaling the sum of all credits.
4. False. Ledger pages are typically numbered sequentially for reference, not like in a textbook.
5. False. Withdrawals are listed in the credit column of the trial balance, not the debit column.
6. True. The rules of debit and credit have remained consistent for centuries in accounting.
7. True. Withdrawals decrease the owner's equity and are therefore recorded as a debit.
8. False. An expense does not create a liability. Expenses decrease owner's equity.
9. True. Transaction analysis charts, such as T-accounts, are commonly used in business to analyze and record transactions.
10. False. A shift in assets means there is a change in the composition or value of assets, not necessarily the total.
11. False. A debit can mean an account is increasing or decreasing, depending on the type of account.
12. True. The chart of accounts is a list of all the accounts used by a company and helps in locating and identifying accounts quickly.
13. True. In an account, the right side is the credit side, where increases are recorded.
14. True. The statement of owner's equity is typically prepared after the balance sheet and shows the changes in the owner's equity during a specific period.
15. False. A trial balance is a preliminary step in the accounting cycle and is prepared before the financial statements.
16. False. Credits decrease revenue accounts, while debits increase them.
17. False. Credit does not necessarily mean something good or positive in the context of accounting.
18. False. Withdrawals are not listed on the balance sheet. They are accounted for separately in the statement of owner's equity.