Answer true or false to the following statements: 6. For the trial balance to balance the debits must equal the credits. 7. The normal balance of all liability accounts is a debit. 9. The normal...

Answer true or false to the following statements:

6. For the trial balance to balance the debits must equal the credits. 
7. The normal balance of all liability accounts is a debit. 
9. The normal balance in an asset account is a debit. 
11. The normal balance of a revenue account is a credit. 
12. If the trial balance balances, it proves that all of the entries have been made correctly. 
13. If an entry has been posted to the accounts twice, the trial balance will still balance. 
14. Transactions are entered in the ledger first and then they are analyzed in terms of their effect on the accounts. 
19. Transactions are recorded in alphabetical order in a journal. 
20. The chart of accounts is list of all the accounts in a company. 
21. A chart of accounts should be arranged in alphabetical order for easier reference. 
22. A trial balance does not prove that all transactions have been recorded or that the ledger is correct. 
23. Errors in a trial balance may only be caused by an error in posting the journal entries to the accounts.

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durbanville's profile pic

durbanville | High School Teacher | (Level 2) Educator Emeritus

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6. True 

7. False. Liability accounts, like revenue and equity are reflected as credits.

9. True

11. True

12. False. Wrong postings, transposed credits and debits, transposed numbers themselves or duplicated or omitted postings could still need addressing.

13. True

14. False. As transactions occur, they are analysed to establish which account will be affected and how they will be affected. 

19. False. Usually in chronological (date) order

20. True

21. False. It can be arranged in any order as preferred. A numeric order is sometimes preferred in computerized systems.

22. True

23. False. (See Q 12. Other errors can occur such as entries which have not been made at all, entries to incorrect accounts, debits reflected as credits and credits reflected as debits, numbers that have been transposed, and so on.)

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malkaam's profile pic

malkaam | Student, Undergraduate | (Level 1) Valedictorian

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6. True, in other words Assets=equities(i.e. owner's equity+liability).

7. False, the normal balance of all liability accounts is credit.

9. True

11. True

12. Usually true, although can be false in some cases, eg. if the statement is: "payment of a/c payable $350" but it has been recorded $3500 in journal or trial balance, in this case the trial balance will be balanced, but incorrect.

13. True

14. False, they are analysed first.

19. False, they are recorded in chronological order.

20. True

21. False, list can be numerical, alphabetical, alpha numeric, usually computerized methods use numeric order.

22. True 

23. False

akamolly's profile pic

akamolly | eNotes Newbie

Posted on

6. True

7. False

9. True

11. True

12. False

13. True

14. False

19. False

20. True

21. False

22. True

23. False

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