Solved by verified expert :16. The
T account got its name because it resembles the letter “T.”
True False
17. The
recording of cash receipts to the cash account will be done by debiting the
account.
True False
18. A
credit to the cash account will increase the account.
True False
19. The
recording of cash payments from the cash account is done by entering the amount
as a credit.
True False
20. The
cash account will always be debited
True False
21. The
balance of the account can be determined by adding all of the debits, adding
all of the credits, and adding the amounts together.
True False
22. Liabilities
are debts owed by the business entity.
True False
23. The
accounts payable account is listed in the chart of accounts as an asset.
True False
24. A
dividends account records amounts paid to stockholders.
True False
25. Revenues
are equal to the difference between cash receipts and cash payments.
True False
26. Expenses
use up assets or consume services in the process of generating revenues.
True False
27. Retained
earnings will be reduced by the amount in the dividends account.
True False
28. When
a company issues new shares of stock, the capital stock account increases due
to revenue being earned.
True False
29. When
an accounts payable account is paid in cash, company expenses increase.
True False
30. When
an account receivable is collected in cash, the total assets of the business
increase.
True False
