Question

For a journal entry with only two lines, the following entry is valid: Increase in a liability, Decrease in an Expense.

A) True
B) False

Answer 1

B) false

Step-by-step explanation:

A Journal Entry can be regarded as a

summary of both debits and credits of the transaction which is entered into the Journal.

For a journal entry with only two lines, ✓When there is increase in one of the Equity of the owner, then there will be decrease in Equity of the second owner.

✓ When there is an Increase in one Asset, there will be Decrease in a Liability.