Instructions: Write T if the statement is correct. Write F if it is incorrect.

________1. Economic transactions and events are initially recorded in the general ledger.
________2. If a given account has debit in excess of credit, then the account would always
possess a debit balance.
________3. The matching principle requires that expenses be recognized in the same period
as the revenue they helped to produce.
________4. Accounting measures and records all events and activities of a business.
________5. The income statement reflects revenues and expenses for one point in time.
________6. Assets minus owners equity equal liabilities.
________7. The trial balance is not a formal statement.
________8. The normal balance of an account is the side of the account where decreases
are recorded.
________9. A trial balance with equal debit and credit totals does not always mean that the
accounting process was free from error.
________10. The periodicity concept assumption holds that an organizations life must be
divided into accounting periods.
Instructions: Supply what is asked in the problem.
Aldub Heating and Aircon Inc. installed a 900,000 heating system for one of its clients. The
client paid 1/3 down and promised to pay the balance in 60 days. Because of this
transaction:
1. Total Assets would increase by __________
2. Total Liabilities would increase by __________
3. Total Owners equity would increase by __________