True or False

[cayman]

Choose the T if the statement is true, the F if it is false :

1/ In double-entry bookeeping there are a few instances where debits maybe made without corresponding credits.
2/ The balance sheet represents an expansion of the equation "Asset = Liabilities + Proprietorship".
3/ The amount which Jones owes to Smith is considered an asset (property) in the same value on the records of Smith.
4/ Assets will be equal to proprietorship if there are no liability claims against the business.
5/ Assets are credited when increased.
6/ A credit entry is required to increase the proprietorship.
7/ Assets - Proprietorship = Liabilities.
8/ The "T" account is a formal device used in keeping a set of books.
9/ James Kain has assets of $12,000 and liabilities of $4,000. His proprietorship therefore would be $16,000.
10/ Only commercial enterprises need accounting records.

Are they simple ?

 

[cayman]

Answers

1/ F
2/ T
3/ T
4/ T
5/ F
6/ T
7/ T
8/ F - The "T" account is merely a teaching or problem solving device. It can have no place, as such, in the formal ledger or journal.
9/ F - Kain's propritorship would be $8,000 (12,000 - 4,000).
10/ F - Records are used not only by commercial enterprises, but also by clubs, churches, professional men, governmental units, and many private individuals.