The Chart Of Accounts Is The Starting Point For A

Question: A new account is opened for each transaction entered into by a business firm.

Answer: False

Question: The recording process becomes more efficient and informative if all transactions are recorded in one account.

Answer: False

Question: When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

Answer: False

Question: An account is often referred to as a T-account because of the way it is constructed.

Answer: True

Question: A debit to an account indicates an increase in that account.

Answer: False

Question: If a revenue account is credited, the revenue account is increased.

Answer: True

Question: The normal balance of all accounts is a debit.

Answer: False

Question: Debit and credit can be interpreted to mean increase and decrease, respectively.

Answer: False

Question: The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

Answer: False

Question: A credit balance in a liability account indicates that an error in recording has occurred.

Answer: False