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Analyze statements al

Analyze statements al

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyze statements about accounting and the recording process. E2.1 (LO 1), K Faith Dillon has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some items, such as cash and accounts receivable, are combined into one account. 4. An account has a left, or credit side, and a right, or debit side. 5. A simple form of an account consisting of just the account title, the left side, and the right side is called a T-account. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. Identify debits, credits, and normal balances.
Transcribed Image Text:Analyze statements about accounting and the recording process. E2.1 (LO 1), K Faith Dillon has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not decreases, in the item it relates to. 3. Some items, such as cash and accounts receivable, are combined into one account. 4. An account has a left, or credit side, and a right, or debit side. 5. A simple form of an account consisting of just the account title, the left side, and the right side is called a T-account. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. Identify debits, credits, and normal balances.
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The accounting recording process is Analyzing the transactions in terms of variables, i.e assets, Liabilities, Capital revenue, and expenses then decides the effect of the transaction in terms of increase or decrease of variables.

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