Answered: tell whether the assets, liabilities…

Business

Accounting

tell whether the assets, liabilities and equity will increase (I), decrease (D) or is not affected (NE).

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter6: Analysing And Journalizing Payroll

Section: Chapter Questions

Problem 15QR

See similar textbooks

Related questions

Q: According to the rules of debit and credit for balance sheet accounts? a. Decrease in asset and…

A: Increase in asset is recorded by debit. Increase in liability is recorded by credit. Increase in…

Q: Indicate whether each of the following accounts represents an asset, liability, or owner's equity:…

A: An asset refers to all the items of cash and cash equivalents for the business. It includes balance…

Q: When the payment is made to creditors, it would result in which among the following? a. decrease…

A: Creditors are the persons to whom the entity has to pay some due money.

Q: For each transaction a through f, identify its impact on the accounting equation (select from 1…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

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: The following table summarizes the rules of debit and credit. Indicate whether the proper answer is…

A: Normal balance of accounts describes the rules of debit credit in a way, like if the normal balance…

Q: Services are provided for customers who are sent bills for the amount they owe. For this…

A: Accounting Equation is a relation between assets, liabilities and stockholders’ equity. The…

Q: Revenues are: O A. decreases in assets resulting from delivering goods or services to customers. B.…

A: Revenue is the amount of money that a business receives on conducting business i.e. sale of goods or…

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

A: When there is debit, the Assets & Expense account will increase & Revenue, capital &…

Q: Accounts that normally have a credit balance are… lag stion © A. Expenses, capital & liabilities B.…

A: The normal balance is the balance side that increases the value of an item. And the opposite side of…

Q: Describe the impact of each of these external transactions on the accounting equation. a. Receive a…

A: Basic accounting equation is Assets = Liabilities + Capital

Q: When a customer eventually pays for items that have been purchased on credit, the transaction will…

A: Here, Customer is our Debtor. Company usually sales its goods on credit and that customer who…

Q: The cash payment of an account payable will have the following impact on the accounting equation.…

A: The payment of the account payable will impact the cash and Account payable balance. Here, cash is…

Q: Which of the following statements concerning the debit-credit feature of the accounting equation is…

A: A debit entry increases an asset or expense account and decreases liability and equity account and…

Q: Jasper Corp. collects payment on an accounts receivable balance. This transaction Select one: O a.…

A: Increase in assets should be debited and decrease in assets should be credited.

Q: Which of the following accounts will be used in equation, if the goods are sold on * ?credit to Mr.…

Q: Which of the following is not an asset account? cash O prepaid expense O accrued expense accrued…

A: The asset will be having a debit balance and liabilities will be having a credit balance. Incomes…

Q: a) Recording the usage of supplies involves an increase in liabilities and a decrease i e b) The…

A: The answer is stated below: Note: Answering the first three subparts as there are…

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: When recognizing revenue, a company has a performance obligation when it agrees to receives cash…

A: Solution: When recognizing revenue, a company has a performance obligation when it agrees to…

Q: An accounting trasaction simultaneously decreases assets and equity.This transaction is explained by…

A: Lets understand the basics. All the accounting transaction are having dual impact. In other words…

Q: The current assets of FDN Company's Statement of Financial Position would have the following: Trade…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

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

A: Prepaid Expenses: Prepaid Expenses is an asset account. Assets increased with a debit. Unearned…

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: Asset (A), Liability (L), or Equity (E)? a. Interest Revenue b. Accounts Payable C. Calhoun, Capital…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Which of these accounts is an asset? A. Common Stock B. Supplies C. Accounts Payable D. Fees Earned

A: Introduction: Assets: Asset means having Economic value to the resource. Assets are of two types: 1…

Q: The following table summarizes the rules of debit and credit. For each of the items (a) through (1).…

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

Q: working capital is defined as a. total current assets minus total current liabilities b.…

A: For every day business and routine activities of business, business needs working capital. It means…

Q: An accounting transactioin simultaneously decreases assets and equity.This transaction is explained…

A: Every transaction has dual effect in the books of account. Accounting equation is: Total assets =…

Q: Consider the following accounts, and determine if the account is an asset (A), a liability (L), or…

A: Lets understand the basics. Asset accounts are accounts on which company has a rights. It include…

Q: Under the allowance method of uncollectible accounts, the entry to write off a customer’s account…

A: As per the allowance method, Bad debt expenses are set off with allowance for doubtful accounts and…

Q: Which of the following transactions will increase an asset and increase a liability?a. Purchasing…

A: An assets is a resource having an economic value that generates positive cash flow in the future for…

Q: When prepaid rent is recognized as an expense, which of the following is true? Select one: a.…

A: Deferred expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: Receiving money from a customer immediately after providing a service will cause total assets, total…

A: The answer is option (1.) [i.e, Increase, remain unchanged & increase respectively] If money…

Q: Rules of Debit and Credit The following table summarizes the rules of debit and credit. Indicate…

A: Normal balance: Normal balance refers to the excess of amount on one side, over the amount on the…

Q: State whether the following are non-current assets, current assets, owner's equity. non-current…

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

Q: Accounting equation is developed based on which of the following ? O a. Money measurement O b.…

A: The question is based on the concept of Accounting Theory.

Q: A credit entry to an account willa. increase assets.b. increase liabilities.c. increase expenses.d.…

A: Definition: Rules of Debit and Credit: Following rules are followed for debiting and crediting…

Q: What is the impact on the accounting equation when a payment of account payable is made? * both…

A: The accounting equation shows that the asset is equal to the sum of liabilities and stockholders'…

Q: According to the rules of debit and credit for balance sheetaccounts:a. Increases in asset,…

A: Balance Sheet accounts for assets & liabilities as well as equity. This is a process that is…

Q: For each of the following independent transactions, indicate whether there was an ncrease, a…

A: The accounting equation states that assets is same as the sum of liabilities and Owner's Equity. It…

Q: A business provider services to a customer on credit.Which of the following is correct: A.Assets…

A: Lets understand the basics. When business provider provide goods or services to customer on credit…

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…

Q: The increases in stockholders' equity attributable to selling services or products to customers are…

A: Stockholder’s equity is the money which is invested by the shareholders’ who are the owners of the…

Question

tell whether the assets, liabilities and
equity will increase (I), decrease (D) or is not
affected (NE).

The company purchases supplies on credit.

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

Consider the following accounts and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Receivable B. Sales Revenue C. Land D. Unearned Revenue
Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payable
What is the impact on the accounting equation when a payment of account payable is made? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
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 these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in cash
When fees are earned and the customer promises to pay later, which account is debited? (a) Cash (b) Accounts Receivable (c) Accounts Payable (d) Capital
What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
Which of the following pairs increase with credit entries? A. supplies and retained earnings B. rent expense and unearned revenue C. prepaid rent and common stock D. unearned service revenue and accounts payable
Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and Unearned Service Revenue B. Electricity Expense and Office Supplies C. Accounts Receivable and Accounts Payable D. Buildings and Common Stock
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Identify whether each of the following transactions, which are related to revenue recognition, are accrual, deferral, or neither. A. sold goods to customers on credit B. collected cash from customer accounts C. sold goods to customers for cash D. collected cash in advance for goods to be delivered later