Kim Yi

[logistic_guy]

Kim Yi has prepared the following list of statements about accounts.

\(\displaystyle \bold{1.}\) An account is an accounting record of either a specific asset or a specific liability.
\(\displaystyle \bold{2.}\) An account shows only increases, not decreases, in the item it relates to.
\(\displaystyle \bold{3.}\) Some items, such as Cash and Accounts Receivable, are combined into one account.
\(\displaystyle \bold{4.}\) An account has a left, or credit side, and a right, or debit side.
\(\displaystyle \bold{5.}\) A simple form of an account consisting of just the account title, the left side, and the right side, is called a T-account.

Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

 

[khansaheb]

Kim Yi has prepared the following list of statements about accounts.

\(\displaystyle \bold{1.}\) An account is an accounting record of either a specific asset or a specific liability.
\(\displaystyle \bold{2.}\) An account shows only increases, not decreases, in the item it relates to.
\(\displaystyle \bold{3.}\) Some items, such as Cash and Accounts Receivable, are combined into one account.
\(\displaystyle \bold{4.}\) An account has a left, or credit side, and a right, or debit side.
\(\displaystyle \bold{5.}\) A simple form of an account consisting of just the account title, the left side, and the right side, is called a T-account.

Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

READ BEFORE POSTING​

Please share your work/thoughts about this problem

 

[logistic_guy]

\(\displaystyle \bold{1.}\) An account is an accounting record of either a specific asset or a specific liability.

false.

It also includes owner’s capital, owner’s drawings, revenues, and expenses.

 

[logistic_guy]

\(\displaystyle \bold{2.}\) An account shows only increases, not decreases, in the item it relates to.

false.

It shows both increases and decreases.

 

[logistic_guy]

\(\displaystyle \bold{3.}\) Some items, such as Cash and Accounts Receivable, are combined into one account.

false.

Both of them are assets, but they are different accounts. Cash is physical money such as coins and bills while Accounts Receivable is money that other people or companies owe to a business but not yet paid.

 

[logistic_guy]

\(\displaystyle \bold{4.}\) An account has a left, or credit side, and a right, or debit side.

false.

The reverse is true. Left is debit and right is credit.

 

[logistic_guy]

\(\displaystyle \bold{5.}\) A simple form of an account consisting of just the account title, the left side, and the right side, is called a T-account.

true.