CHAPTER 1—RECORDING DEPARTMENTAL PURCHASES AND CASH PAYMENTS TRUE/FALSE 1. The petty cash fund is replenished at the mid-point of each fiscal period. ANS: F PTS: 1 2. A business with many daily transactions has little use for special journals. ANS: F PTS: 1 3. Liability accounts have normal credit balances. ANS: T PTS: 1 4. Amounts in the General Debit and General Credit columns of a cash payments journal are posted individually. ANS: T PTS: 1 5. Expense accounts have normal debit balances. ANS: T PTS: 1 6. The accounting equation may be stated as assets = liabilities. ANS: F PTS: 1 7. An owner's equity account has a normal debit balance. ANS: F PTS: 1 8. A purchases discount is typically stated as a percentage. ANS: T PTS: 1 9. Revenue accounts have normal debit balances. ANS: F PTS: 1 10. In a departmental accounting system, gross profit is calculated for all departments as one entity. ANS: F PTS: 1