The Recording Process

1. An account is an accounting record of either a specific asset or a specific liability.
2. An account shows only increases, not decreases, in the item it relates to.
3. Some items, such as Cash and Accounts Receivable, are combined into one account.
4. An account has a left, or credit side, and a right, or debit side.
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, indicates how to correct the statement

Answer

1. False because an account is an accounting record of a specific Assets, Liability or Owner's Equity items
2. False because an account shows increases and decreases, it the item it relates to.
3. False because No items, such as Cash and Accounts Receivable, are combined into one account.
4. False because an account has a left, or debit side and a right, or Credit side
5. True