11. The dividends account is a subdivision of the retained earnings account and appears as an expense on the income statement.
12. Revenues are a subdivision of retained earnings.
13. Under the double-entry system, revenues must always equal expenses.
14. Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts.
15. All accounts reported in the statement of financial position are increased by using debits on the left-hand side of the T-account.
16. The rules for debit and credit and the normal balance of Share Capital–Ordinary are the same as for assets.
17. Companies report share capital–ordinary and dividends in the equity section of the statement of financial position.
18. Transaction information may be entered directly into the accounts without using a journal.
19. Business documents can provide evidence that a transaction has occurred.
20. Each transaction must be analyzed in terms of its effect on the accounts before it can be recorded in a journal.