account, we will ____ it. A. Debit B. Credit
Q: A credit is not the normal balance for which account listed below? Select one: a. Owner’s Drawings…
A: Generally assets and expenses has debit balances and incomes and liabilities has credit balances. In…
Q: Unearned revenue is: a. A liability account. b. All the options are wrong c. An asset account. d. An…
A: The liabilities are the amount due for payment or any revenue received in advance.
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: (d) Based on (c), what will be the ending balance in AFDA? What is net realizable value of A/R?
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…
Q: Debit means decrease and credit means increase True or false? Please explain
A: In accounting, journal entries are prepared in the form of debit and credit.
Q: b.) Credit
A: Prepayment is an accounting term referred to the types of expenses not incurred yet but for which…
Q: If the raw material and other services are acquired along with the invoices but have not yet been…
A: Journal entry for Raw material and other services are acquired along with the invoices but have not…
Q: A ____ will cause Cost of Goods Sold to decrease. A. Debit B. Credit
A: Cost of Goods Sold means Cost involved in making of goods or providing services. Direct Material,…
Q: Which of the following applications of the rules of debit and credit is true?
A: Debit and credit are the left and right sides of a T-account. Depending on the type of account, the…
Q: crease in revenue is on the credit side hence a decrease in expense is also on credit side true…
A: Solution: Revenues have credit balance and expenses have debit balances. When Revenue is credited it…
Q: Unearned Service Revenues are revenues with Credit as a normal balance True O False
A: Unearned Service Revenue The concept of unearned revenues in a firm in which the nature is not for…
Q: true or false Asset accounts normally have a credit balance
A: Assets are debited when increased and credited when decreased. So the balance remains at the end…
Q: Accumulated depreciation account and allowance for doubtful accounts account are two examples of…
A: A contra asset account is one in which the account's natural balance is either zero or credit…
Q: The account, Discount on Notes Payable, is a a.contra-asset. b.deferred charge. c.liability.…
A: Discount on notes payable - It is the amount payable by the concerned investor is less than the…
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: What part of the A=L +SE does expenses and revenues under and are they CR or DR balances? Expenses…
A: The accounting equation shows that sum of all assets= sum of liabilities + sum of owner's…
Q: What is an account receivable? O a. Sales O b. Asset O c. Income O d. Creditors
A: Following is the answer to the given question
Q: Excess of Debit side over Credit side is called?
A: Books of accounts contains various ledgers. And these ledgers contain various accounts. These…
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: The amount by which the balance sheet does not balance at first is called _______. A. total B.…
A: When balance sheet doesn't balance at the first, it means there is some error or mistake which need…
Q: Capital Loss (MSS Loss) account is an expense account and increased by a credit. O a. False Ob. True
A: Capital loss is the loss that is incurred when the value decreases for the capital asset like real…
Q: equest a
A: Manufacturing overhead rates refer to the regulated factory expenses designated for each unit of…
Q: Which of the following describes the classification and normal balance of the unearned fees account?…
A: UNEARNED FEES : IT IS A UNEARNED REVENUE ( CASH RECEIVED IN ADVANCE FOR PROVIDING GOODS AND…
Q: Which of the following is true regarding 'Credit Balance' in ledger account? O a. All options are…
A: Option d is correct.
Q: A ____ will cause Accumulated Depreciation to decrease. A. Debit B. Credit
A: Particulars debit credit Depreciation Amt Accumulated depreciation Amt
Q: A T-account (ledger account) does not have the word asset, liability or equity. How can you tell…
A: The accounts are maintained by the business in order to keep proper record of the transactions that…
Q: Which of the following accounts does not belong in the purchases and disbursement cycle?
A: A disbursement is the paying out of funds, whether to make a purchase or other transaction.…
Q: Question An example of an account that can NOT have an exceptional balance is: O An A/R Account A…
A: Exceptional Balance - Exceptional Balance is the balance other than the actual account balance of…
Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…
A: A transaction is a business engagement that has an economic effect on a financial statement and is…
Q: Which of the following statements is most likely to be correct? Bad debts recovered account, if…
A: The company will maintain a book called journal where all the transactions will be recorded. From…
Q: A contra account will not be listed immediately after its related account. O be potentially…
A: A contra account is the type of account that has balance that is opposite of the normal balance for…
Q: Expired cost shown in: O a. Balance Sheet as a liability O b. Balance Sheet as an asset O c. Profit…
A: Net profit means the difference between the income and expenses. Financial statement means the…
Q: The debts written off as bad, if recovered subsequently are Oa. Credited to bad debts recovered…
A: Bad debts are part of the accounts receivables which are no longer collectible. This is because the…
Q: Where the correct accounts are used but each item is shown on the wrong side of the account is an…
A: Errors in the account books are the unintentional mistakes that the person preparing the account…
Q: The purchase of good on credit require: O A. Amount of payment O B. Timing of payment O C. Credit…
A: Purchase of goods means when goods are bought or purchased from some other party. These goods can be…
Q: l amount from an account in which you want to decrease the balance, you use the __________________…
A: The safe withdrawal rate method involves balancing comfotable living without depleting retirement…
Q: Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash…
A: We first need to understand the meaning of quick asset. Quick assets are the assets which is…
Q: Which of the following is not an example of closing costs? O title insurance O points O prepaid…
A: Closing costs refers to the expenses and fees paid by the buyers and sellers of a real estate…
Q: The normal balance of an account is the side of the account (either the debit side or the credit…
A: Every account has a normal balance of a positive value. Assets positive value is debit side.…
Q: Revenue has the effect of: A.increasing assets and decreasing liabilities B.increasing assets and…
A: Revenue is generated through the sale of goods or providing services to the customer, it increases…
Q: Identify the nt below that is correct: Multiple Choice Debits decrease asset and expense accounts,…
A: A ledger is a book of accounts that contains debits and credits from the journals that have been…
Q: Which of the following is not a contra account? A, Purchase returns and allowances B. Sales…
A: A contra account is the account which offsets its balance with the balance of another related…
Q: ____ will cause Deferred Revenue to decrease. A. Debit B. Credit
A: Customers make money to you before you provide them with a good or service, which is referred to as…
Q: Which situation indicates loss on the income statement a. Total debits exceed total credits b.…
A: Income statement is a statement show the gross profit and net profit earned by comparing the sales…
Q: The type of account with a normal credit balance is: Group of answer choices an asset drawing a…
A:
Q: Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset…
A: solution:- Introduction:- Allowance for doubtful accounts means as follows under:- Allowance for…
Q: Allowance for Doubtful Accounts is classified as a(n) ______ account and has a normal ______…
A: The allowance for doubtful accounts is established to record the estimated bad debt expenses.
To decrease a contra-asset account, we will ____ it.
A. Debit
B. Credit
Step by step
Solved in 3 steps
- Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash c.Temporary investments d.Accounts receivableAccumulated depreciation account and allowance for doubtful accounts account are two examples of contra asset account. The normal balance of these two accounts would be: a credit balance a debit balance similar to the related normal asset accounts nil balancetrue or false Asset accounts normally have a credit balance
- In Asset method, Prepayment accounts must be recorded on a.) Debit b.) Credit c.) Both d.) Neither Debit not CreditAllowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset account d. Liability accountIf a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?
- Assuming the following account balances, what is the missing value?LO3 A debit to an asset account will decrease it.A decrease in an asset account is a: A. Debit entry to the asset account B. Credit entry to the asset account C. Debit entry to the liability account D. Credit entry to the liability account
- Excess of Debit side over Credit side is called? Select one: a. All of the above b. Debit Balance c. Liability Accounts d. Credit Balancean increase in revenue is on the credit side hence a decrease in expense is also on credit side true or falseUsing practical example discuss why current asset is not seen not part of the income statement b) Discuss with practical example how the absence double entry principle will significantly affect the preparation of trial balance c) Discuss using practical example to show the importance of a trial balance to the preparation of income statement Discuss with figures how you will detect errors if the trial balance does not agrees
