Now, here is a quick exercise on the review of someimportant terms. In each of the following statements, indicate ifthe statement is true or false, and if it is false, explain brieflywhy.1. A credit to a ledger account refers to the entry ofan amount on the right side of the account.2. The left-hand side of an account is used in recording debits andthe right-hand side for recording credits…in all kinds ofaccounts.3. If the number of debit entries in an account is greater than thenumber of credit entries, the account will have a debitbalance.4. Liability accounts should only be credited and neverdebited.5. When making a general journal entry, there can only be one debitand one credit.6. A business that is profitable and liquid will have more accountswith credit balances than with debit balances.7. Every transaction is recorded by equal dollar amounts of debitsand credits.8. When a company uses the double-entry method, the total dollaramount of debits recorded must equal the total dollar amount ofcredits, but the number of debit and credit entries maydiffer.9. An increase in liability is recorded by a credit; an increase inowners’ equity by a debit.
(it’s simple and quick)