1. A new account is opened for each transaction entered into by a business firm.

True

False

2. The recording process becomes more efficient and informative if all transactions are recorded in one account.

True

False

3. When the volume of transactions is large, recording them in tabular form is more efficient than using journals and ledgers.

True

False

4. An account is often referred to as a T-account because of the way it is constructed.

True

False

5. A debit to an account indicates an increase in that account.

True

False

6. If a revenue account is credited, the revenue account is increased.

True

False

7. If an expense account is credited, the expense account is increased.

True

False

8. Debit and credit can be interpreted to mean increase and decrease, respectively.

True

False

9. The double-entry system of accounting refers to the placement of a double line at the end of a column of figures.

True

False

10. Liability accounts are increased by debits and have normal debit balances

True

False