A debit balance in which of the following accounts would indicate a likely error? a.Notes Payable b.Supplies c.Salaries Expense d.Accounts Receivable

Q: Compared to the accrual basis of accounting, the cash basis understates income by the net decrease…

A: when net income has to be computed as per cash basis, the revenues and expenses actualle received or…

Q: Which of the following accounts is not normally part of the revenue and collection cycle?a. Sales.b.…

A: Revenue and collection cycle is business process related to the products delivery and collection of…

Q: If the credit to record the payment of an account payable is not posted,a. cash will be…

A: The correct option is option “a”. a. cash will be overstated.

Q: a.  Determine the amount of the adjusting entry for uncollectible accounts. b.  Determine the…

A: Allowance for Doubtful has a Credit Balance In Normal Situation Amount of Uncollectible Accounts =…

Q: Which of the following is True about accounts payable? Accounts payable should not be reported at…

A: Accounts payable refers to the money owed to vendors or suppliers for products or services purchased…

Q: Accounts payable and accrued liabilities are interchangeable account titles.

A: Accounts payable: accounts payable is the amount that have to be paid to the supplier of goods or…

Q: The accounts of customers who have not yet made payment for the goods or services are called: O a.…

A: Accounting indicates to a system which helps the corporation in identifying the daily…

Q: A credit is used to decrease which of the following accounts (more than one may be correct)?…

A: As per rules of debit and credit,  All assets, expenses, withdrawals and dividend accounts will…

Q: Adjusting entry for accrued expense includes a debit to Expense and a credit to Liability. (A) True…

A: Answer: Accrued expenses are expenses that are appearing as the expenses but it is still not paid to…

Q: Posting errors are identified in the following table. In column (1), enter the amount of the…

A: Errors in posting refer to those that are done while recording the journal entries in books and the…

Q: If the credit to record the purchase of supplies on account is not posted,a. liabilities will be…

A: The correct option is option “a”. a. liabilities will be understated

Q: Which of the following is NOT the objective of preparing a trial balance? O a. To help in preparing…

A: Trial balance is summary of all general ledger account balances as on a particular date. It shows…

Q: 1. The revenue recognition concept a. Determines when revenue is credited to a revenue account. b.…

A: Accounting principle:   These are the guidelines which are to be applied while preparing the…

Q: The preferred method of accounting for uncollectible accounts is ? A) net realizable method. B)…

A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

Q: Which one of the following best describes the allowance for doubtful accounts? a.Statement of…

A: Allowance for doubtful debt is created for the accounts receivables whose recovery is uncertain. It…

Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…

A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…

Q: Which of the following statements is prepared to ensure that total debit equals total credit…

A:

Q: The collection of customer’s account is credited to accounts payable. What is the effect of the…

A: Ans. When a customer pays the journal entry to be passed is :    Cash a/c  Dr.      xxxx…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: vable retention must be included in the calculations for the collection period? True or false. If…

A: Account receivable retention is period for which the amount of time for which money is held by the…

Q: Discuss briefly how transactions are accounted for events after the reporting period.

A: Event after the reporting period: Events occurring after the balance sheet date means those…

Q: The entry to write off an account receivable under the allowance method willT ( A. increase total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: debit or credit? accounts payable unearned revenue prepaid expense repairs and maintenance…

A: Assets are recorded in Balance Sheet and have debit balances and liabilities have credit balances.…

Q: The concept underlying the malching at Net income shouid be reported on an annua basis. a. b. All…

A: Accounting Principles- Accounting principles are the ideologies that are to be applied by a…

Q: What is the net impact to total assets when an account receivable is written ofif? decrease in total…

A: JOurnal entry for written off of Accounts receivable: DATE ACCOUNTS DEBIT CREDIT   Allowance…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: A credit balance in which of the following accounts would indicate a likely error? a.Common Stock…

A: Normally all assets and expense accounts will have debit balance. All liabilities, capital and…

Q: How is the account Accounts Payable classified and what kind of balance should it have? Group of…

A: Accounts payable is the term for current liabilities in regard to purchases made on credit. Such…

Q: e estimated amount of uncollectible accounts al Accounts to the proper amount?

A: Estimated amount of uncollectible = Accounts receivable * Percentage of uncollectible

Q: When converting from cash basis to accrual basis accounting, which of the following adjustments…

A: Cash receipts from customers under cash basis of accounting includes receipts collected from…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: As per the three golden rules of accounting a) In case of real accounts-We need to debit what comes…

Q: Which one of the following is not a part of an account? Select one: a. Title b. Credit side c.…

A: Account consists of: Date Title Debit side Credit side

Q: A revenue account is closed by debiting Income Summary and crediting Service Revenue. True or False

A: A major step in the accounting cycle that must not be skipped by any company is the closing process.…

Q: Under the allowance method for uncollectible receivables, the entry to record uncollectible-account…

A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…

Q: Posting errors are identified in the following table. In column (1), enter the amount of the…

A: Description of Posting Error Difference between Debit and Credit Columns Column with the Larger…

Q: If the balance in Cash Short and Over at the end of a period is a credit, it should be reported as…

A: The income statement is the statement in which all the revenue and expenses concerning operations…

Q: ment of supplier’s account is debited to accounts receivable. What is the effect of the error in…

A: Supplier account is an account payables account classified under current liabilities .Accounts…

Q: What is the normal balance of accounts payable? Group of answer choices debit either debit or credit…

A: Solution: Accounts payable are liabilities due to purchase of merchandise or services on account.…

Q: Which of these transactions requires an adjusting entry (Debit) to Accounts receivable? a. Expenses…

A: Accounts Receivables are debited when the sale is made but ash payment is deferred.

Q: The payment of supplier's account is debited to accounts receivable. What is the effect of the error…

A: Ans. The error while passing journal entries leads to overstated or understate of profits.

Q: Which of the following is most likely considered an adjusting entry? a. The entry to record the…

A: Solution: The entry to record bad debts expense is generally made at the end of period based on…

Q: Which of the following increases the reported receivables in the financial statements? offsetting a…

A: The increase in account receivables means to debit account receivable.

Q: What type of entry will decrease the normal balances of the general ledger accounts Interest…

A: In General ledger account interest receivable and fees receivable are assets (current assets)

Q: The payment of supplier’s account is debited to accounts receivable. What is the effect of the error…

A: The Account Receivables are assets for the firm and Account Payables are liability for the firm. The…

Q: Which of the following accounts have a debit normal balance? Select one: a. Dividends Payable b.…

A: Ans.  b  Salaries expense

Q: For each of the following situations, indicate whether itrepresents an accounting error and explain…

A: Accounting errors exists when there is omission of recording a transaction in the account or the…