STATEMENT 1: There are only two parties involve in a credit transaction STATEMENT 2: A CREDITOR is either an individual or a business that provides money, supplies or services to a company or individual and does not demand payment immediately. STATEMENT 3: A DEBTOR is an individual or entity or even a client owes the business money for services already rendered. A. All statements are true B. Statement 1 and 2 are true C. Statement 2 and 3 are true D. Statement 1 and 3 are true

STATEMENT 1: There are only two parties involve in a credit transaction STATEMENT 2: A CREDITOR is either an individual or a business that provides money, supplies or services to a company or individual and does not demand payment immediately. STATEMENT 3: A DEBTOR is an individual or entity or even a client owes the business money for services already rendered. A. All statements are true B. Statement 1 and 2 are true C. Statement 2 and 3 are true D. Statement 1 and 3 are true

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 8Q

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Statement 1: In case there is a credit balance in a customer's account, such amount shall not affect the total balance of the accounts receivable to be presented in the asset section of the statement of financial position.Statement 2: A credit balance in a customer's account is caused by overcollection of amounts receivable from customers which will result to a liability to be presented in the noncurrent section of statement of financial position.Which statement(s) is(are) correct?
A customer of Triple D can also be a supplier to Triple D and then, if the creditor’s amount is more than the debtor’s amount, the balance of the debtor can be transferred to the creditor’s account. True False
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Using the double entry system together with the accounting equation, determine what is debits and credits apply the following scenario. The business pays off a loan it took out EFT from its bank account A Credit assets, debit liabilities B Debit assets, Credit liabilities C Debit assets, Credit owner s equity D Credit assets, Debit owner s equity
Under what circumstances would accounts receivable be posted as a credit balance : A. When the business provides additional credit to itscustomer B. When the business receives additional revenue C. when the business receives additional revenue D. When the business pays to its suppliers
Which one of the following statements is false?a. Consumer loans are loans banks advance to individuals.b. Loans are classed as liabilities on a bank’s balance sheet.c. Loans are classed as assets on a bank’s balance sheet.d. Deposits are classed as liabilities on a bank’s balance sheet.
Help me answer the 3 question 18. Which of the following situations will cause total debit balance to be greater than the total credit balance? Select one: a. The amount extracted from a creditor’s account is posted to the wrong side of the trial balance. b. Sales of goods are recorded as purchases of goods in the ledger accounts. c. The amount extracted from the account of a debtor, Mr. Lee is posted as P1,000 instead of P1,100 in the trial balance. d. The purchase of fixture is recorded in the furniture account. 19. Which of the following statements regarding a trial balance is incorrect? Select one: a. A trial balance proves that no errors of any kind have been made in the account during the accounting period. b. A trial balance is a list of all of the open accounts in the ledger with their balances as of a given date. c. A trial balance helps to localize errors within an identifiable time period. d. A trial balance is a test of the equality of the debit…
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Question: 1. What is the correct source documents for credit purchase by business. 2. what is the correct source documents for bank charges from business bank account. reqiured: please answer this question by giving one of the correct source documents for this two questions.
True or False. 1. Payment of the loan is expected to be in the form of cash, and in currency, as agreed upon in the loan agreement. 2. A debtor may authorize anybody to pay the creditor on his behalf. 3. The creditor has no right to refuse payment from person authorized by the debtor. 4. The debtor is obliged to pay the loan unconditionally. 5. Creditor has the right to demand payment of cash only. 6.
1. Which of the following is not a financial instrument? a. accounts receivable b. accrued utilities payable c. cash d. advances to suppliers 2. Which of the following is not a financial asset? a. investment in bonds b. investment in held for trading securities c. prepaid income tax d. interest receivable 3. Which of the following is a financial liability? a. income tax payable b. unearned revenue c. warranty obligation d. lease liability
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