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TRUE$/$FALSE$.$ Write $\text{'}T\text{'}$ if the statement is true and $\text{'}F\text{'}$ if the statement is false.

When a business makes a cash payment, the Cash account is debited.

In a trial balance, total debits must always equal total credits.

A debit always means a decrease, and a credit always means an increase.

The normal balance of an account is the increase side of the account.

Prepaid Insurance is an asset account that appears on the balance sheet.

Contra asset accounts, such as Accumulated Depreciation, always have normal

debit balances.

In the worksheet, the adjusted balance of the Service Revenue account appears

in the credit column of the income statement.

The permanent accounts$-$assets, liabilities, and stockholders' equity$-$are closed

to the Common Stock account.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the

question.

Which of the following organizations is responsible for the creation and governance of

accounting standards in the United States?

A$)$ Institute of Management Accountants

B$)$ Financial Accounting Standards Board

C$)$ American Institute of Certified Public Accountants

D$)$ Securities and Exchange Commission

Which of the following is the correct accounting equation?

A$)$ Assets $+$ Revenues $=$ Liabilities $+$ Expenses

B$)$ Assets $+$ Liabilities $=$ Equity

C$)$ Assets $+$ Revenues $=$ Equity

D$)$ Assets $=$ Liabilities $+$ Equity

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