Identify the nt below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts.

Identify the nt below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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an increase in revenue is on the credit side hence a decrease in expense is also on credit side true or false
If 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?
The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Liabilities Debit Owner's equity: Capital Credit Credit Drawing Income statement accounts: Revenue Credit Expense Credit Debit
Which of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
Which of the following applications of the rules of debit and credit is true?a) Increase rent expense with debits and the normal balance is a debit.b) Decrease accounts receivable with credits and the normal balance is a credit.c) Increase accounts payable with credits and the normal balance is a debit.d) Decrease cash with debits and the normal balance is a credit.
When liability, capital, and revenue accounts increase, there will be a _____________. a. Neither Debit nor credit b. Credit. c. debit and credit. d. debit.
Accumulated 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 balance
Which one of the followings is TRUE? Select one: a. Account Effect of transaction Entry in account Assets Increase Credit Liability Increase Debit Capital Increase Credit b. Account Effect of transaction Entry in account Assets Increase Debit Liability Increase Debit Capital Increase Credit c. Account Effect of transaction Entry in account Assets Increase Debit Liability Increase Credit Capital Increase Credit d. Account Effect of transaction Entry in account Assets Decrease Debit Liability Increase Credit Capital Decrease Credit
Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts receivable, inventory, and equipment B. Expenses that decrease retained earnings C. Dividends that decrease retained earnings D. Revenues that increase retained earnings
Revenue is recognized for accounting purposes when a performance obligation is satisfied. In some situations, revenue is recognized over time as the fair values of assets and liabilities change. In other situations, however, accountants have developed guidelines for recognizing revenue at the point of sale. Instructions (Ignore income taxes.) a. Explain and justify why revenue is often recognized at time of sale. b. Explain in what situations it would be appropriate to recognize revenue over time.
Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…