Double-entry bookkeeping — true or false?

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Every transaction has at least one debit and one credit.

2. Statement is true

   Yes

   Statement

   Assets = Liabilities + Equity is the accounting equation.

3. Statement is true

   No

   Statement

   An increase in assets is recorded as a credit.

4. Statement is true

   Yes

   Statement

   An increase in liabilities is recorded as a credit.