Concept explainers
Accounting equation is the mathematical representation of the relationship among the assets, liabilities, and
To Explain: Whether Person J is correct on his perception that under dual effect, for all transactions, one account will increase and one account will decrease.
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FINANCIAL ACCOUNTING W/ACCESS >CI<
- 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 examplesarrow_forwardWhich 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.arrow_forwardWhich two accounts are affected by each of the following transactions? Table 3.11arrow_forward
- Debit means decrease and credit means increase True or false? Please explainarrow_forwardThe 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 incurredarrow_forwardA credit is used to decrease which of the following accounts (more than one may be correct)? Multiple correct question Service Revenue Insurance expense Dividends Casharrow_forward
- 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.arrow_forwardWhich of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.arrow_forwardWhich of the following is true about accounts payable? 1. Accounts payable should not be reported at their present value. 2. When accounts payable is recorded at the net amount, a Purchase Discounts account will be used. 3. When accounts payable is recorded at the gross amount, a Purchase Discounts Lost account will be used. a. 1 b. 2 c. 3 d. Both 2 & 3 are truearrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengagePrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College