ACFAR IFA Topic 3 (t or f) Exam Solution Update 2026/2027 (1 page)

A simple journal entry consists of two debits and one credit. - False A credit entry to an expense account will increase it. - False The process of recording a transaction in a journal is called journalizing. - True Amounts entered on the left side of an account, regardless of the account titles, are called credits or charges to the account. - False The accounting cycle begins with the recording of the transactions and ends with the preparation of the financial statements. - False Double posting of a transaction causes the debits and credits not to balance. - False The journal entry may include debits to more than one account and credits to more than one account but the total of the debits must always equal to the total of the credits. - True A business bought a photocopier for office use. The payment was recorded in the Photocopying Expense. - False Notes receivable are claims against debtors evidenced by a written promise to pay a certain sum of money at a definite time to the order of a specified person or the bearer. - True The chart of accounts is a system of organizing and numbering the accounts in the general ledger. - True A trial balance may balance but may not be correct. - True Posting refers to the process of transferring the debit and the credit amounts from the journals to the ledger accounts. - True Dates of transactions are included in the trial balance. - False The transposition error means a posting of a journal entry to the wrong ledger account. - False The sequence of the account titles in a trial balance depends upon the size of the account balances. - False