Answered: Jerry believes that “dual effect”…

Jerry believes that “dual effect” indicates that, for all transactions, one account will increase and one account will decrease. Is Jerry correct? Explain.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter1: Starting A Proprietorship: Changes That Affect The Accounting Equation

Section1.2: How Business Activities Change The Accounting Equation

Problem 2AYU

See similar textbooks

Related questions

Q: Under the double-entry system of accounting, every transaction affects at least two accounts. True…

A: Suppose cash spent for salary payment for $10,000. In this case, salary expense should debit, since…

Q: There are four transactions that affect owner's equity. a. What are the two types of transactions…

A: Owners’ equity: The claims of owners on a company’s resources, after the liabilities are paid off,…

Q: Which of the following statements is not true? Multiple Choice The number of credits posted must…

A: The double entry system or arrangement of bookkeeping or accounting implies that for each business…

Q: A customer of Triple D can also be a supplier to Triple D and then, if the creditor’s amount is more…

A: A creditor is the entity to whom the company owes money whereas a debtor is an entity who owes money…

Q: As provided by our authors, please explain the reason that a minimum of two accounts are impacted by…

A: A minimum of two accounts are impacted by every transaction due to the following reasons: A…

Q: True (t) or False (f) ____ The matching principle states that debits mus equal credits in each…

A: Matching concept follows the accrual accounting concept of business.

Q: Show the effect of each transaction on the items listed next to the transactions(increase, decrease,…

A: Definitions : Current ratio The current ratio is the measure of liquidity. It is computed by…

Q: When there is Debit, some accounts increase and some decrease. Which among the following accounts…

A: Note: As per golden rules of Accounting, Debit all the assets and expenses and credit all the income…

Q: Which of the following statements is false? Select one: a. Revenues are increased by debits b.…

A: Revenue is a positive factor which will increase in shareholders share. Any increase in revenue will…

Q: How can his revenue and expenses match? Discuss in a group several ways that Edward's accountants…

A: How revenue and expenses match Edwards foster wil book the expense in the period in which…

Q: When there is Debit, some accounts increase and some decrease. Which among the following accounts…

A: Answer: There are assets and liabilities and equities in the financial statements of the company.…

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: Which of the following accounts is increased by the use of debit?

A: The Correct Answer is for accounts is increased by the use of debit:

Q: What is reconciling an account? Why it is needed? Give three examples?

A: Reconciliation:It is a process of accounting process that compares two sets of record to check…

Q: account, we will ____ it. A. Debit B. Credit

A: A contra asset account is a type of asset account with a balance that can be either negative or…

Q: DO DEBITS AND CREDITS HAVE TO EQUAL ON A TRIAL BALANCE??

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: If the debit side of the Trail balance equal the credit side that's mean all the transactions…

A: Duality principles represent the double effects of every transaction of business. every transaction…

Q: Analyze each separate transaction by showing its effects on the accounting equation- specifically,…

A: In accounting, the double-entry system is being followed while recording the business transaction…

Q: State your opinion on the following statement: "If the debits and the credits in the Trial Balance…

A: The statement is not entirely correct. Normally it can be perceived that "If the debits and the…

Q: How are the statements interrelated? How to Choose three accounts, all from one statement, and…

A: Introduction:- The financial statements are comprised as follows under:- (1) balance sheets (2)…

Q: Explain the importance of the Trial Balance State your opinion on the following statement: "If the…

A: The trial balance represents the ending balances hold by their respective ledgers and record these…

Q: How many of the following statements regarding debits and credits are true? A credit will cause an…

A: In this question, we have been asked about the rules of debit and credit, on the basis of which we…

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: Do the terms debit and credit signify increase or decrease, or can they signify either? Explain.

A: Debit: A debit, in an accounting term refers to the left side of an account. The term debit can be…

Q: Do the term debit and credit signify increase or decrease, o

A: Debit means increased under limited conditions . You must look at what type of an account you are…

Q: The duality of effects can best be described as follows:a. When a transaction is recorded in the…

Q: For each transaction, the number of accounts debited must equal the number of accounts credited.…

A: The transactions of the company will affect the account balances either by increasing or decreasing…

Q: pute the effects on revenue, expenses, total assets, total liabilities and equity. Write NE for no…

A: Step 1 Accounting equation is based on Double entry system which is formula is Assets = Liabilities…

Q: Which of the following sentences is Not correct: Monetary unit assumption states that only…

A: Book Keeping: Financial transactions are recorded through book keeping.

Q: The balance of an account is determined by a.adding all of the debits, adding all of the credits,…

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: The balance of a T account is equal to

A: Introduction: T - Accounts: After completion of journal entries each entry should be posted in T…

Q: A trial balance may prove that debits and credits are equal except a. All of these may prove that…

A: A trial balance can show debits and credits are equal even when a transaction is entered twice or…

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: If a transaction is properly analysed and recorded:(a) Only two accounts will be used to record the…

A: Accounting transactions are the transactions recorded in the financial statements of the company…

Q: Would you please remind me how the debits and credits system works? Why do the assets get debit…

A: Accounting System - Accounting System is based on the 3 Golden Rules - 1. Debit the Receiver and…

Q: Explain why the debit and credit total of a trial balance should always be equal? What are the…

A: In a trial balance, all debits total should always be equal to all credits total. Because as per…

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: For the basic accounting equation to stay in balance, each transaction recorded must affect less…

A: The correct answer for the above question is given in the following steps for your reference.

Q: Define the followings? a. Real Account. b. Temporary Account.

A: a.Real Account:Real accounts are a general ledger account that does not close during the accounting…

Q: describe a scenario in which you as a nonaccountant might us accounting.

A: A process that involves the recording transactions of financial nature is known as accounting.

Q: If the two totals in a trial balance are equal, does that automatically mean there are no errors in…

A: A trial balance shows the compilation of all ledger balances into the debit and credit side.

Q: Which of the following statements is correct? Prepaid Expenses are decreased with a debit. Unearned…

Q: If total debits equal total credits on the trial balance, is the trial balance error-free? Explain…

A: The statement which shows the summary of debit and credit balance is called trial balance. If both…

Q: From the following statements which give the cumulative effects of indrvidual transactions, you are…

A: When ever there is a transaction , there will be an effect in accounting equation. All the required…

Q: c. Account Effect of transaction Entry in account Assets Increase Debit Liability Increase Credit…

A: Assets indicate the resources owned or possessed by the entity and it could be converted to cash. A…

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

Jerry believes that “dual effect” indicates that, for all transactions, one account will increase and one account will decrease. Is Jerry correct? Explain.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

The duality of effects can best be described as follows:a. When a transaction is recorded in the accounting system, at least two effects on the basic accounting equation will result.b. When an exchange takes place between two parties,both parties must record the transaction.c. When a transaction is recorded, both the balance sheetand the income statement must be impacted.d. When a transaction is recorded, one account willalways increase and one account will always decrease.
Explain why the debit and credit total of a trial balance should always be equal? What are the situations that a trial balance total will not be equal? Explain with the help of at least two examples
A trial balance may prove that debits and credits are equal except a. All of these may prove that debits and credits are equal b. A transaction could have been entered twice c. A transaction could have been omitted d. An amount could be entered into the wrong account
For every debit there will be an equal credit according to a. Money measurement concept b. Dual aspect concept c. Cost concept d. Matching concept
The balance of an account is determined by a.adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum b.always subtracting the debits from the credits c.adding all of the debits to all of the credits d.always subtracting the credits from the debits The matching principle a.requires that the dollar amount of debits equal the dollar amount of credits on a trial balance b.states that the revenues and related expenses should be reported in the same period c.addresses the relationship between the journal and the balance sheet d.determines whether the normal balance of an account is a debit or credit Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether or not cash is paid b.when they are incurred and paid at the same time c.if they are paid before they are incurred d.if they are paid after they are incurred
True (t) or False (f) ____ The matching principle states that debits mus equal credits in each transaction.
I need to do a trial balance for this and im not able to get equal credit and debits. can u help please
If total debits equal total credits on the trial balance, is the trial balance error-free? Explain your answer?
Which of the following statements is false? Select one: a. Revenues are increased by debits b.Revenues increase owner’s equity. c. Revenues have normal credit balances. d. Revenues are a positive factor in the computation of net income.
A credit is used to decrease which of the following accounts (more than one may be correct)? Multiple correct question Service Revenue Insurance expense Dividends Cash
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.
Put your knowledge of the double-entry accounting system to the test Choose one transaction and show which accounts are affected by the transaction, according to the double entry system.