All of the following statements are correct except • The payment of a liability decreases both assets and liabilities • An asset is expensed if already used in business • A change in assets is always accompanied by a change in liabilities

Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation…

A: Accounting changes means when there is some change in the process and methodologies related to…

Q: The Business is in loss, when ________" a) Revenue exceeds Expenditure  b) Assets exceeds…

A: The Question has covered the concept of Loss. Note:- Since you posted multiple question we will…

Q: Assets that are used in business activities for more than one year and do not turn into money within…

A: Balance sheet shows the financial position of the company that represents that the asset is equal to…

Q: The bookkeeper for your company made a mistake and forgot to accrue interest expense at the end of…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: b. Give an example for each of the following types of transactions for the accounting equation: i.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Which of the following is / are correct? I. An enterprise established entirely with equity has no…

A: Check the solution in step 2

Q: The liability created by a business owner when purchasing an asset like office supplies or equipment…

A: The liabilities are the amount due to be paid to the creditors or suppliers of the business.

Q: Can a business transaction cause one asset to increase with-out affecting any other asset,…

A:

Q: According to the accounting equation, when owner's equity is constant, any increases in liability…

A: Accounting equation is written as Assets = Liabilities + Owner's equity Both side of equation should…

Q: Describe a transaction that would:   Increase both an asset and a liability.  Increase one asset…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: Give an example of business transactions that would: Cause one asset to increase and another asset…

A: Business transaction Business transactions are the transactions that are recorded in monetary…

Q: A) Which of the following would not be included as a current liability? (Land loan, Land loan…

A: Current liability is a short term obligation that is typically due within one year or payable in…

Q: All of the following are incorrect as to the rights of creditors regarding a business's assets…

A: Stockholders have residual claims on the assets of the company.e., they are paid only after paying…

Q: A credit to a liability account a) indicates a decrease in the amount owed to creditors. b) is an…

A: Amount owed  by the company to the outside persons such as suppliers, bank etc are called…

Q: Which of the following terms defines the underlying assumption of Going Concerns? A The company is…

A: The companies use a set of rules and guidelines in the preparation of financial statements with a…

Q: provide an example of a transaction that would: increase one asset account but not change the amount…

A: Increase in one asset account but not change the amount of total assets.Transaction: Purchase of…

Q: Given the revenues and expenses of a business, net loss will result if: a. All the above situations…

A: Revenue means the amount earned by selling the goods or services. Expenses means the amount spent on…

Q: The balance sheet identity refers to the fact that A.) Current Assets and Current Liabilities must…

A: The financial statements of the business includes balance sheet and income statement.

Q: uUnder the double-entry system of accounting, a debit represents a decrease to a liability account.…

A: Journal entry is the practice of recording commercial transactions for the first time in the books…

Q: Transactions can never affect only assets or only liabilities. * A. True B. False   Owner’s…

A: Purchase of fixed assets on cash affect only asset side of the balance sheet. Owner's investments in…

Q: Because of some careless book keeping, energy corporation had some errors in their accounting. Which…

A: The accounting equation states that assets equal to sum of liabilities and equity.

Q: Which of the following is the correct ending to the next sentence? When an owner makes a withdrawal…

A: Any withdrawal for personal use affects drawing account. Drawing account has a normal debit balance.…

Q: Choose the correct. A company’s management has uncovered events that indicate that substantial doubt…

A: The correct answer is Option (b).

Q: What are the two primary items that bring about a change in proprietorship during the accounting…

A: Change in proprietorship means the items which affects the owner's capital. There are two reasons…

Q: When a company has net income, what happens to its assets and/or to its liabilities? 2. Why must a…

A: Solution 1- When a company has net income  its Stockholders Equity will increase (Retaining Earning)…

Q: The effect of payment made to creditors of the business would be a. Increase an asset and increase a…

A: Creditors are decreased. Cash is decreased.

Q: The effect of payment made to creditors of the business would be O a. Decrease an asset and decrease…

A: An Payment of any liability will lead to decrease in asset and decrease in liability

Q: Which of the following is most appropriate for IFRS? a. Should disclose all the material information…

A: IFRS stands for International Financial Reporting Standards. It refers to the standard and rules, as…

Q: Statement I: Current assets are expected to be settled within the normal operating cycle of the…

A: Current assets are expected to be realized within 12 months after the end of the entity’s reporting…

Q: TRUE OR FALSE? 1. Valuation accounts also known as contra accounts or valuation reserve are neither…

A: Contra accounts are the accounts which are used to offset the balance of asset or liability…

Q: Explain in what situations it would be appropriate to recognize revenue over time

A: Recognition of Revenue over time: In situations where the service or sales of goods is divided over…

Q: For each of the following categories, state concisely a transaction that will have the required…

A: a. Increase an asset and increase a liability. Borrowed $10,000 from bank in exchange of 1 year note…

Q: Which of the following is not included in continuing operations? Loss on the sale of equipment Gain…

A:

Q: Collection of an R.O 1500 Accounts Receivable. The effect on the components of the basic accounting…

A: Accounts receivable:  It is a current asset of an organization. It is the amount due from customers…

Q: . Mr. Shimul doesn't calculate profit and loss periodically. On the other hand he doesn't assess the…

A: Accounting concepts are those rules, regulations and guidelines which must be followed by all the…

Q: Statement 1:Liability is a present obligation of an enterprise. Statement 2: Liability is payable to…

A: Liability is something that is repayable. The company has to pay back the person or organization…

Q: It is important to determine the correct amount of liabilities on a balance sheet because if you do…

A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…

Q: .Expenses represent a reduction in ___. A.assets B.revenue C.liability D.equity 2.You are presented…

A: Assets and liabilities and equity are part of balance sheet, revenue is part of income statement

Q: The concept that business is assumed to exist for an indefinite period and is not established with…

A: Solution: The concept that business is assumed to exist for an indefinite period and is not…

Q: Suzanne knows that an increase to an expense reduces retained earnings (a stockholders’ equity…

A: Consistent information :         Any accounting information or set of accounting information can be…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is