The purchase of supplies on credit to be use on the main office of the entity, will cause a corresponding what effect on corresponding accounts? a. Increase in assets and decrease in liabilities b. Both increase in assets and liabilities c. Increase in liabilities and decrease in assets d. Both decrease in assets and liabilities

Q: When the entity received payment from its customers, without rendering its services yet, this would…

A: Payment received from customer without rendering its services is Income received in advance /…

Q: Business transactions are economic events that involed all the above information except: Select…

A: Accounting principles means those set of standards which is followed while preparing the books of…

Q: Liabilities are

A: Liabilities are not involved in closing entries. This is because only temporary accounts of income…

Q: One of the requirements to provide an adequate accounting basis. (a) The existence of a special…

A: SOLUTION EXPLANATION- THE BASIS OF ACCOUNTING REQUIREMENT IS THE TIME VARIOUS FINANCIAL TRANSACTIONS…

Q: Match the statements below with the accounting assumption, characteristic, or principle to which the…

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarising and…

Q: The accounting equation underlies the process used to capture the effect of economic events. The…

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of the…

Q: Which of the following is a feature of the transaction file? Conceptually similar to the ledger in…

A: A transaction file is the file which contains the list of transactions. It is used to update the…

Q: Consider the following statements: I. For Income Statement accounts, evidence is considered to Be…

A: Income statement is a statement which records the revenue and expenses of an undertaking for a…

Q: The revenue recognition principle states that:  (a) revenue should be recognized in the accounting…

A: The revenue recognition principle is the accounting principle that states that how and when the…

Q: When fresh start accounting is utilized, how are a company’s assets and its liabilities reported?

A: Except for deferred income taxes, all liabilities at the same time reported as future cash payments…

Q: Posting is the process of a. Analyzing the impact of the transaction on the accounting equation. b.…

A:

Q: 1. Generally accepted accounting principles are A. income tax regulations of the Internal Revenue…

A: Generally Accepted Accounting Principles are group of accounting standards that are used to…

Q: What is the name of the accounting concept in which revenue earned  during the accounting period…

A: An accrual is a journal entry that is used to recognize revenues and expenses that have been earned…

Q: 19. The totality of income and revenues at the disposal of the business entity is penpo s payable.…

A: Income and Revenues of the business are the financial resources of the business which are generated…

Q: a. A collection of accounts and account balances is referred to as a(n) b. Increases and decreases…

A: Accounting is the maintaining a record   records or process of recording all the financial…

Q: Which one of the following increases the current liabilities of a business entity? Select one: a.…

A: Liabilities are know as the financial obligation or financial debt which has to payable by the…

Q: The principle of revenue recognition results in: a. recording revenue in the income statement b.…

A: In Accounting, there are certain principles and conventions which are followed to get fair view of…

Q: Which of the following is the account where the increases are recorded to the receivable side and…

A: Company sell products on credit and these selling create customers on credit so these are to be…

Q: The collection of customer’s account is credited to accounts payable. What is the effect of the…

A: Ans. When a customer pays the journal entry to be passed is :    Cash a/c  Dr.      xxxx…

Q: Give an example of how this chosen principle affect the financial reporting process. You can explain…

A: The principle of consistency suggests that you need to adhere to and follow this principle…

Q: A change from cash basis to accrual basis should be reported A. Retroactively as a correction of…

A: Cash basis refers to the accounting of the transactions as and when the cash is received. Whereas…

Q: Unearned revenues O a. are recorded as assets when cash is received. O b. are referred to as future…

A: Revenue is the total income earned by a company by selling all its goods or services. It is recorded…

Q: 19. Which of the following criteria must De recorded for accounting purposes? The event must be an…

A: Solution 19: As per money measurement concept, a business should only record an accounting…

Q: In the process of applying the entity's accounting policies, management makes various judgments,'…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only .…

Q: The following table contains several business transactions for the current month. Required:…

A: Basic elements of financial statements are 1. Assets 2. Liabilities 3. Owner's Equity 4. Revenue 5.…

Q: Statement 1: Control is the power to govern the financial and operating policies of an entity so as…

A: Statement 1: The control is the activity that operates the policies in order to maximize profit from…

Q: One output of the accounting information system is the balance sheet. Transactions commonly…

A: Accounting information system is one of the important system that is being used for maintaining and…

Q: The accounting concept that supports reporting revenues in the period in which they are earned is…

A: Explanation: 1. Revenue recognition concept: As per the revenue recognition concept, revenues are…

Q: Assess whether each of following would be recorgnized in the balance sheet of an entity? Explain?…

A: Balance sheet is one of the financial statement of the business. This is prepared for review of…

Q: A set of financial statements:a. Is intended to assist users in evaluating the fi nancialposition,…

A: Financial statement refers to all the written recorded statements which are helpful in conveying the…

Q: Show how the below transactions affect the financial position of the business as represented by A =…

A: As per accounting equation of the business, total assets must be equal to total liabilities and…

Q: Match the statements below with the accounting assumption, characteristic, or principle to which the…

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarizing ,…

Q: The collection of customer’s account is credited to accounts payable. What is the effect of the…

A: Following is the effect of the error in assets and liabilities of the entity.

Q: The business entity assumption is important because O a. it requires that the company record all of…

A: Business entity assumption is a fundamental accounting assumption as per which the business entity…

Q: s liabilities incurred prior year, what is the proper debit

A: Option a is wrong because accounts receivable is not liability, it is an asset. Option b is wrong…

Q: Which of the following statements is characteristic of accrual basis accounting? Expenses are…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

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.