College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 2, Problem 3QY
To determine
Identify the correct statement.
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Students have asked these similar questions
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.
Which of the following statements is correct?
Prepaid Expenses are decreased with a debit.
Unearned Revenue is increased with a debit.
Rent Expense is increased with a credit.
Accounts Payable is increased with a credit.
Which of the following rules is incorrect ?
The answer is
A. Debits increase the capital account .
B . Credits increase revenue accounts .
C. Credits decrease the drawing account .
D. Debits decrease liability accounts .
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
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- For each of the following items, indicate whether a debit or a credit applies. A. increase in retained earnings B. decrease in prepaid rent C. increase in dividends D. decrease in salaries payable E. increase in accounts receivable F. decrease in common stock G. decrease in prepaid insurance H. decrease in advertising expense I. decrease in unearned service fees J. increase in office equipmentarrow_forwardDEBIT AND CREDIT ANALYSIS Complete the following statements using either debit or credit: (a) The cash account is increased with a __________. (b) The owners capital account is increased with a __________. (c) The delivery equipment account is increased with a __________. (d) The cash account is decreased with a __________. (e) The liability account Accounts Payable is increased with a __________. (f) The revenue account Delivery Fees is increased with a __________. (g) The asset account Accounts Receivable is increased with a __________. (h) The rent expense account is increased with a __________. (i) The owners drawing account is increased with a __________.arrow_forwardWhich of the following is False about the left side of a T - account ? A. It reflects a decrease in owner's capital account . B. It reflects the normal balance of equity . C. It reflects an increase in expenses account .D. It reflects an increase in assets account .arrow_forward
- Which of the following accounting procedures are INCORRECT? I) Asset An increases, Debit & A decrease, Credit II) Capital - Arn increases, Debit & A decrease, Credit II) Expenses - An increases, Debit & A decrease, Credit IV) Income An increases, Debit & A decrease, Credit V) Liabilities An increases, Credit & A decrease, Debit I and V only Il and IV only I,Il and III only I,IIl and V onlyarrow_forwardDirections: TRUE or FALSE. Write True if the statement is correct and False if it is not. Write your answers on a separate answer sheet. The left side of the T-account is called the debit. Assets are increased by credit. Assets is equal to the sum of liabilities and owner’s equity. Increases in liability accounts are credited. Decreases in asset accounts are credited. An increase in rent expense is a debit by the rules of debit and credit. Income is increased by credit. Expenses are increased by debit Decreases in liability accounts are debited. Assets, and expense accounts have debit account balances.arrow_forwardWhich of the following accounting procedures are INCORRECT? I) Asset An increases, Debit & A decrease, Credit II) Capital - An increases, Debit & A decrease, Credit III) Expenses - An increases, Debit & A decrease, Credit V) Income - An increases, Debit & A decrease, Credit V) Liabilities - An increases, Credit & A decrease, Debit l and V only Il and IV only I,II and IIl only I,IIl and V onlyarrow_forward
- When there is Debit, some accounts increase and some decrease. Which among the following accounts will increase with a debit? a.Capital b.Accounts payable c.Furniture d.Service revenuearrow_forwardI'm enrolled in Accounting I, and I am having problems understanding whether a debit or credit decreases the normal balance of the following accounts: a. interest payable/ b. service revenue/ c. salaries expense / d. accounts receivable / e. owner capital / f. prepaid insurance / g. buildings / h. interest revenue / i. owner withdrawal / j. unearned income / k. accounts payable / l. land Can you help?arrow_forward1. Which of the following statements is FALSE?A. Increase in asset is debited.B. Decrease in asset is creditedC. Increase in liability is debited.D. Decrease in liability is debited.2. Which of the following statements is FALSE?A. Increase in expense is debited.B. Increase in cash is debited.C. Decrease in notes receivable is credited.D. Decrease in accounts payable is credited.3. Which of the following statements is FALSE?A. Increase in capital investment is credited.B. Increase in withdrawal is debited.C. Increase in interest income is debited.D. Decrease in loan payable is debited.4. Which of the following statements is FALSE?A. Increase in unearned revenue is credited.B. Increase in revenue is debited.C. Decrease in supplies is credited.D. Decrease in allowance for doubtful accounts is debited.5. Which of the following statements is FALSE?A. Increase in equipment is debited.B. Increase in mortgage payable is credited.C. Decrease in unearned revenue is debited.D. Increase in…arrow_forward
- Revenue will be recognized when the following occurs as a result of a business activity with a customer: a) There is an increase in assetsb) There is an increase in liabilities c) There is a decrease in assetsd) none of thesearrow_forwardSales made to Ahmed on credit should be debited to? Select one: a. Cash A/C b. Account Receivable A/C c. Sales A/C d. Account Payable A/C hen the owner withdraws money from the business for personal use -Which of the following has correct effect on accounting equation? Select one: a. Expense increase and Cash decrease b. Cash increase and Capital increase c. Cash decrease and Capital decrease d. Income increase and Cash decreasearrow_forwardA credit is used to record an increase in all of the following accounts exceptA. Utility Expense.B. Share Capital.C. Accounts Payable.D. Service Revenue.2. Generally, all of the following financial statements can be prepared with informationfrom the trial balance exceptA. Income Statement.B. Statement of Cash Flows.C. Statement of Retained Earnings.D. Statement of Financial Position.3. The Dividends account is increased with a debit because dividendsA. are an expense.B. are declared an asset.C. reduce liabilities.D.result in a decrease in equity, so debiting Dividends would have the effect ofdecreasing Equity.4. When a company pays cash for a truck, what is the effect on the accounting equationfor that company?A. Increase assets and increase liabilities.B. Decrease assets and decrease liabilities.C. Increase assets and increase equity.D. No net change.5. Gordon Company was recently formed with a $5,000 investment in the company byshareholders. The company then borrowed $2,000 from a…arrow_forward
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