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B - 1 2 and 3 only C - 1 3 and 5 only D - 2 4 and 6 only Q 12 - In accordance with best practice, what should you do before logging a new defect? A - Assign a defect ID.

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Every transaction will give rise to two accounting entries, a debit and a credit. Because of this basic fundamental rule, it means that all the debits and all the credits in the ledger will be equal. A useful matrix may help in understanding double entry: Event Financial statement Debit or Credit Increase in assets Balance sheet Debit

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NOTE: 110 Questions & Answers on True Or False on Accounting Basics A C OU N TI G EP S& D BL R Y M ru eFals 1. Accounting Principle is general law or rule followed in the preparation of financial statements 2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles 3.

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Accrual- vs. Cash-Basis Accounting What you will learn in this chapter is accrual-basis accounting. Under the accrual basis, companies record transactions that change a company’s financial statements in the periods in which the events occur. For example, using the accrual basis to determine net income means companies recog-

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