True / False Questions
1. Accounting records are also referred to as the books.
2. The first step in the analyzing and recording process is to analyze each transaction and event from source documents.
3. Preparation of a trial balance is the first step in the analyzing and recording process.
4. Items such as sales slips, invoices, checks, and purchase orders are source documents.
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5. An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.
6. According to the seller, a customer's promise to pay is called an account payable.
7. Dividends are a type of business expense.
8. As prepaid expenses are used up, the costs of these assets become expenses.
9. Land and buildings are generally recorded in the same ledger account.
10. It is not necessary to keep separate accounts for all items of importance for business decisions.