Give an example for each of the following types of transactions: A)Increase in one asset, decrease in another asset. B)Increase in asset, increase in liability C)Increase in asset, increase in owner's capital

Give an example for each of the following types of transactions: A)Increase in one asset, decrease in another asset. B)Increase in asset, increase in liability C)Increase in asset, increase in owner's capital

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 4E: Describe a business transaction that will do the following: a. Increase an asset and increase a...

See similar textbooks

Related questions

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: A fixed asset is sold for less than book value: If fixed asset is sold, cash will be come into the…

Q: Discuss the basic accounting problem that arises in handling each of the following situations. a.…

Q: Accumulated depreciation is: The depreciation expense recorded on an asset to date. The…

A: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its…

Q: After the disposal of an asset, the balance in the Accumulated Depreciation account related to that…

A: Depreciation are required to be charged by the business entities so as to shown the assets in the…

Q: The assets that can be easily converted into cash within a short period of time that is one year or…

A: Assets are resources that are controlled by the entity so that they can generate economic through…

Q: which metric is used as the profitability metric and explain what it evaluate?

A: Profitability Matric is somewhere helps to analyse the financial performance and financial position…

Q: Assets that are NOT expected to provide benefits for a number of accounting periods are called…

A: Solution: Assets that are NOT expected to provide benefits for a number of accounting periods are…

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

A: The transaction in the business can effect different accounts as debit and credit.

Q: for the asset turnover ratio, which of the following best describes net assets? A. Fixed Assets +…

A: Asset turnover ratio is a measure which says that how effectively business assets are generating…

Q: Please respond to all questions related to Fixed Assets. 1. Is it necessary for a business to use…

A: Definition of Depreciation Depreciation is defined as the charging of an asset involved in producing…

Q: ment of a long-term asset, the depreciation of a long-term asset, and the sale of a long-term…

A: The organization would be established for doing business in the market. Thus, it requires a lot of…

Q: Which of the following would be considered a long−term asset? A. Office Supplies B. Land…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Which of the following journal entries correctly reflect settlement date accounting? Select one: a.…

A: In case of settlement accounting, transactions have to be recorded in the books of accounts of the…

Q: When it is probably that future economic benefits associated with an asset will flow to the entity,…

A: Accounting standard 1 deals with the disclosure of accounting policies which states that the company…

Q: Explain why depreciation expense is added back to net income and why an increase in inventories is…

A: A Cash flow statement is a financial statement that provides summarised information regarding cash…

Q: The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the…

A: Solution: Depreciation is charged on non current assets like equipment, building, vehicle etc. It is…

Q: If an asset increases in value, the increase is noted as________. Select one: a. an increase in net…

A: An increase in value of an asset can be result of revaluation gain on asset or reversal of…

Q: Give an example of a transaction that results in: a. A decrease in an asset and a decrease in a…

A: Transaction analysis: Transaction analysis is an economic event that causes impact on the value of…

Q: How long does an asset remain the most useful to the company? What do statutes and accounting rules…

A: Financial Accounting: It refers to the process of recording the financial transactions of the…

Q: What kind of assets are relatively long-lived and depreciate over time?

A: Depreciation is the reduction in the value of asset due to passage of time. Accounting entry for…

Q: Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Record the entry to adjust asset values to fair value.

A: In this problem assets are revalued at a gain. So the gain i.e difference…

Q: -1) Write down at least two examples for : Asset Liability Capital or Owners Equity Revenue Expense

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: An asset classified as property, plant, and equipment on the balance sheet must have which one of…

A: Property plant and equipment are: long term assets means they are expected to be used from more…

Q: Depreciation occurs as a result of: A. Wear and tear B. Decrease in the value of assets C. Increase…

A: Since depreciation is occurse as a result of normal wear and tear and due to which it causes a…

Q: When Accumulated depreciation account is credited with the amount of depreciation a. The cost of…

A: When Depreciation on Fixed Assets cumulated every year and credited to Accumulated Depreciation It…

Q: Which of the following would not be an adjustment to net income using the indirect method? Group of…

A: The cash flow statement using indirect method starts with net income and adjusts for non cash items…

Q: Classify the accounts listed below by matching the account name with one of the following financial…

A: Current assets are all those assets that are realizable to cash within one year such as accounts…

Q: two different depreciation methods and prepare a chart showing the effects the depreciation method…

A: Two method of depreciation Straight line method Written down value method

Q: When companies acquire resources (in the form of expenses), they can either be reported as an asset…

A: When the company acquires resources for their operation it will be reported either assets in the…

Q: Which of the following is NOT correct regarding the rate of return on assets? a. The rate of…

A: Return on assets measures the profitability of a company relative to its assets. Return on assets =…

Q: in horizontal analysis explain the results of total current asset and non current assets and what…

A: Horizontal analysis is the analysis in which an analyst tries to find out and determine how much…

Q: Which of the following events will NOT increase the demand for assets? A. Decline in wealth…

A: Assets refers to any capital expenditure that will generate recurring returns to holder over long…

Q: Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: In the most general sense, which of the following would you expect to be true? Select one: a. If a…

A: a. If current asset account and current liability account both increases by the same amount there…

Q: - In the inflows and outflows method, the following are considered exceptional inflows: A) Interest…

A: The correct option in the given question is (A) Interest earned on investment and sale of…

Q: Which of the following statements is true? a) Tangible assets lack physical substance. b) Tangible…

A: Before we going to answer this question we should know the definition of tangible assets . Tangible…

Q: What effect does the recognition of depreciation expense have on total assets? On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…

Q: name two situations in which a business can take a depreciation expense.

A: The portion of a fixed asset that's been considered destroyed in the current period is depreciation…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe a business transaction that will do the following: a. Increase an asset and increase a liability b. Decrease an asset and decrease a liability c. Decrease an asset and increase an expense d. Increase an asset and increase owners equity e. Increase an asset and decrease an asset f. Increase an asset and increase revenue
Describe a transaction that would: Increase both an asset and a liability. Increase one asset and decrease another asset. Decrease both a liability and an asset. Increase both an asset and retained earnings. Decrease both an asset and retained earnings.
Which of the following would be considered a long−term asset? A. Office Supplies B. Land C. Retained Earnings D. Accounts Payable
provide an example of a transaction that would: increase one asset account but not change the amount of total assets. decrease an asset account and a liability account. decrease an asset account and increase an expense account. increase an asset account and a liability account.
Which of the following statements are TRUE? a. The reason for including a treatment of depreciation in this book is to allow you to develop a reasonably accurate report to the owners of a business regarding its value at any given point in time. b. Depreciation spreads investment costs over the useful life of equipment purchased. c. Depreciation allowances can be treated as expenses because they are cash flows. d. Depreciation affects income taxes, which are cash flows.
Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding liability B. A reduction to the corresponding asset C. An increase in the corresponding liability D. An increase in the corresponding asset
Can a business transaction cause one asset to increase with-out affecting any other asset, liability, or owners’ equity?
b. Give an example for each of the following types of transactions for the accounting equation: i. Increase in one asset, decrease in another asset.ii. Increase in an asset, increase in liability.iii. Increase in an asset, increase in owner’s equity capital.iv. Decrease in an asset, decrease in liability.v. Decrease in an asset, decrease in owner’s capital.
Land is purchased on credit. For this transaction, identify the effect on the accounting equation.a. Assets increase and liabilities increase.b. Assets increase and owners’ equity increases.c. Liabilities increase and owners’ equity decreases.d. Liabilities decrease and assets decrease.
The net assets approach of computing for the net income requires this item to be added to the ending capital. a. Beginning capital b. Additional investments c. Withdrawals d. Increase in Liabilities
InstructionsIndicate with the appropriate letter whether each of the transactions above results in: (a) An increase in assets and a decrease in assets. (b) An increase in assets and an increase in owner’s equity. (c) An increase in assets and an increase in liabilities. (d) A decrease in assets and a decrease in owner’s equity. (e) A decrease in assets and a decrease in liabilities. (f) An increase in liabilities and a decrease in owner’s equity. (g) An increase in owner’s equity and a decrease in liabilities.
Which of the following statements is true? Group of answer choices A. Tangible assets have physical substance. B. Tangible assets lack physical substance. C. Tangible assets will be consumed in a year or less. D. Tangible assets will be consumed in over a year.