Question

T or F – Accounting uses a double entry system?
2. T or F – Assets = Liabilities + Owners Equity?
3. T or F – Assets – Liabilities = Owners Equity?
4. T or F – Assets are normally on the debit side of the T account?
5. Advantages of ERP systems include:
A) saves money
B) helps adjust to changes
C) replaces separate software systems
D) all of the above
) T or F – Accounts receivable are more common than notes receivable?
7) T or F – Only the % of completion method requires an adjustment at the end of an accounting period?

Answer 1

1) Accounting uses a double entry system?

The statement is true because Accounting uses the double entry system which is debit and credited todifferent accounts where debit and credit is equal

2) Assets = Liabilities + Owners Equity?

The statement is True. The equation for the balance sheet items is Assets = Liabilities + Owner's equity

3 Assets – Liabilities = Owners Equity?

The statement is False because The equation for the balance sheet items is Assets = Liabilities + Owner's equity

4 Assets are normally on the debit side of the T account?

The statement is true because Assets are debited and have debit balance . Hence Assets are normally on the debit side of the T account.

5. Advantages of ERP systems include:
The advantages of the ERP are saves money, helps adjust to changes, replaces separate software system.

Hence option D All of the Above is Correct

6) Accounts receivable are more common than notes receivable?

The Statement is false because we will see accounts receivable and notes receivable as common receivables in business

7) Only the % of completion method requires an adjustment at the end of an accounting period?

The statement is False because the % of completion method is not the only method which requires adjustments at the end of the accounting period. Adjustments requires for other methods also like Accrual method of Accounting, Completed contract method etc.