Test Bank For Financial Accounting 15th Edition by Warren

Accounts are records of increases and decreases in individual accounting equation elements. A : true B : false Correct Answer : A 2 : A chart of accounts is a listing of accounts that make up the journal. A : true B : false Correct Answer : B 3 : The chart of accounts should be the same for each business. A : true B : false Correct Answer : B 4 : Accounts payable are accounts that you expect will be paid to you. A : true B : false Correct Answer : B 5 : Consuming goods and services in the process of generating revenues results in expenses. A : true B : false Correct Answer : A 6 : Prepaid expenses are an example of an expense. A : true B : false Correct Answer : B 7 : The Unearned Revenues account is an example of a liability. A : true B : false Correct Answer : A 8 : The Dividends account is an expense. A : true B : false Correct Answer : B 9 : Accounts in the ledger are usually maintained in alphabetical order. 1 / 35 TEST BANK FOR CORPORATE FINANCIAL ACCOUNTING 15TH EDITION WARREN A : true B : false Correct Answer : B 10 : Depending on the account title, the right side of the account is referred to as the credit side. A : true B : false Correct Answer : B 11 : To determine the balance in an account, always subtract credits from debits. A : true B : false Correct Answer : B 12 : An account in its simplest form has three parts to it: a title, an increase side, and a decrease side. A : true B : false Correct Answer : A 13 : The T account got its name because it resembles the letter T. A : true B : false