Which of the following sequences states the order in which accounts are listed on a trial balance? Cash: 5,000 Increase to Proudfoot, Capital: (CR) a. Unearned revenues; Prepaid rent; Revenues. A credit is used to record an increase in all of the following accounts except: A. Here are some tips for using a credit card to build credit: 1. \hline \text { End of Year } & 0 & 1 & 2 & 3 & 4 & 5 \\ Memorize rule: Assets = Liabilities + Equity, Memorize rule: the sum of all assets will equal the sum of liabilities + equity, Each account generally will have an ending debit balance or credit balance, depending on the account type. Cash and Accounts Receivable c. Treasury Stock and Common Stock d. Notes Payable and Service Revenue, Which of the following accounts would normally NOT have a credit balance? Which of the following transactions will increase total assets? A: Step 1: Financial statements include: The income statement which includes the summary of revenues. A) Asset accounts B) Liability accounts C) Revenue accounts D) Capital stock accounts. b. accrual basis? What is the normal balance? Retainedearnings,October1NetincomeCashdividendsdeclaredStockdividendsdeclared$12,400,0002,350,000175,000300,000. Transactions to the revenue account will be mostly credits, as revenue totals are constantly increasing. (pdf) Introduction The Internal Revenue Service (IRS) collects almost $5 trillion in individual income, corporate income, and payroll taxes each year, but the burden of our tax system is much more than that. Which of the following is correct about credit period. Is the Accounts Receivable account an asset, liability, equity, revenue, or expense account? a. Under the accrual basis, Protection Home will record $2,200 of service revenue for the year. a. Final Finishing is considering three mutually exclusive alternatives for a new polisher. Depreciation Expense b. Accounts Receivable C. Common Stock D. Prepaid Expense This problem has been solved! Depreciation Expense b. Cash: 6,000 A. Owner, Withdrawals: OE Is its normal balance a debit or a credit? b. D. Accounts Payable. Necessary cookies are absolutely essential for the website to function properly. Common Stock and Rent Expense b. Question options: b. Our experts can answer your tough homework and study questions. a. capital, revenues, expenses Ob. The revenue recognition principle requires companies to record revenue when (or as) the entity satisfies each performance obligation. Asset increases are recorded with a debit. a. Unearned Accounts Receivable. Bills for items such as internet expense will be first recorded into accounts payable, a liability account. a. when Seacoast Magazine should record revenue for this situation. Polisher 1 requires an initial investment of $20,000 and provides a. wages payable b. notes payable c. unearned revenue d. accounts receivable. B) A trial balance presents data in debit and credit format. During the year, a total of $20,500 of office supplies were purchased and debited to the office . Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, accrued revenue. Which of the following accounts is increased with a debit? Liabilities, equity, and revenue increase with a credit and therefore have credit ending balances. Short Answer Question: For each of the following, (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or credit (Cr.) Interest payable c. Accounts payable d. Capital. C. Accounts receivable. Revenue: $9,000 b. accrual basis? When a business collects cash, the Cash account is debited. v. The Office Supplies account balance at January 1, 20x5 was $6,900. Is the dividends account an asset, liability, equity, revenue, or expense account? Retained earnings at the end of the accounting period will be increased with a credit of $950,000. Make sure to pay your bill on time each month. a. depreciating accounts receivable b. recognizing accounts receivable c. valuing accounts receivable d. accelerating cash receipts from accounts receivab, Which of the following items is not in a balance sheet? C) Collect cash from customer for services provided on account last month.D) Pay dividends to current stockholders. The ending balances in equity accounts will therefore be credits so that the equation will balance. Accounts Payable is a liability account, unearned revenue is a liability account and Collins, capital is an equity account. Increase Accounts Payable with a credit and the normal balance is a credit. A) Expenses increase equity, so an expense account's normal balance is a debit balance. Analytical cookies are used to understand how visitors interact with the website. Does a debit or a credit represent an increase? Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which one of the following accounts will be CREDITED when making closing entries? A, Which of the following is false? State whether the normal balance is a debit or credit balance. Retained earnings is not the same as cash, because it is based on net income or loss, not cash received. B) fees earned. Note that these terms are exactly opposite of how the bank will refer to them! a. An Account that would be decreased by a credit is: A) Cash. B. Accounts Receivable c. Common Stock d. Dividends e. Retained Earnings, Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements? Companies on the accrual basis accounting will record expenses as they are incurred. Owner, Capital: OE, B Both these accounts increase with a debit and decrease with a credit. The loan is payable on February 1, 20x6, for the face amount of $200,000 plus interest for one year. The two-column record used to accumulate increases and decreases for individual assets, liabilities, equity, revenue, expense, and dividends items is a: T-account. c) not affected by accounts receivable. A debit will increase which one of the following accounts? Common Stock and Rent Expense b. Accounts Payable. c. Prepaid Rent. Accumulated depreciation b. The cookie is used to store the user consent for the cookies in the category "Performance". D) Salaries Expense. An example is a cash equipment purchase. Late payments can have a negative impact on your credit score. Which one of the following is a source of cash? Entry to record an accrued revenue. Increases and Decreases d. Prepaid expenses. Accounts Payable Accrual basis accounting necessary under US-GAAP requires revenue to be recorded before cash is received. Which of the following accounts is increased with a credit? Expenses A) Assets B) Liabilities C) Revenues D) Expenses. Accounts receivable increased $6,000; Condensed financial data of Bonita Company for 2017 and 2016 are presented below. a. c. Accumulated depreciation. T-accounts help both students and professionals understand accounting adjustments, which are then made with journal entries. But opting out of some of these cookies may affect your browsing experience. List three ways in which free enterprise (or capitalism) and socialism are different. a. The closing records income statement activity for the period on the balance sheet, using retained earnings. Lets say a business starts by issuing stock in exchange for $1,000,000 cash received from an investor. (Deferred Expense) Would a debit or a credit increase its account balance? A. D. Salaries expense. The time period concept assumes that the activities of a business can be sliced into small time segments and that financial statements can be prepared for specific periods of time. Confused? a. b. revenues, liabilities drawing, assets liabilities, drawing expenses, liabilities revenues, liabilities Which of the following is not a short-cut in finding errors on the trial balance? Capital and Investments C. Rent income and Loan D. Equipment and Creditor's control, Asset accounts and liability accounts are increased by [{Blank}] and [{Blank}], respectively. Feb, Which of the following is an asset account? A credit is used to record an increase in all of the following accounts except: A. Accounts Payable Accounts Payable is a liability. Take the example of a cash purchase for a client lunch. In which of the following types of accounts are increases recorded by credits? Aquatic Supplies Company purchased $2,000 of supplies on account. c. Interest payable. B. Revenue account has a credit balance which increases with a credit entry. b. sales. b. liability account. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. Sales Revenue. Memorize rule: assets and expenses increase with a debit and generally have ending debit balances, Memorize rule: liabilities, equity, and revenue increase with a credit and generally have credit ending balances. Example 0. Source documents provide the evidence and data for accounting transactions. Is the Wages Expense account an asset, liability, equity, revenue, or expense account? Accounts Payable B. Which of the following accounts decreases with a credit? Contributed capital in excess of par value. Which of the following represents the correct flow of accounting data? Accounts Receivable: 12,000 Land, Notes Receivable, and Prepaid Insurance c. Sales Revenue, Cash, and Equipment d. Rent Expense, Retained Earnings, an, A transaction that will increase working capital is _____. Accounts receivable. Notes Payable (CR) Is the cash account an asset, liability, equity, revenue, or expense account? To record this transaction, cash is increased $200 with a debit and expense is decreased $200 with a credit. B) Increase in assets, increase in liabilities. The estimated receipts and disbursements associated with the Under cash basis accounting, expenses are recorded when cash is paid. Notes Receivable A Common Stock E Prepaid Insurance A Notes Payable L Rent Revenue E Taxes Payable L Rent Expense E Furniture A Dividends E Unearned Revenue L Wages Expense b. Protection Home provides house-sitting for people while they are away on vacation. a) Sales b) Merchandise Inventory c) Accounts Payable d) Interest Revenue, Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner? B. increase asset accounts. A) revenues and expenses a. a. a.common stock, revenues, expenses b.liabilities, common stock, revenues c.assets, common stock, revenues d.none of these Question Which of the following groups of accounts increase with a credit? d) both an expense account and an asset account. b. Accounts payable b. Unearned revenue c. Wages payable d. Prepaid expense. Depreciation Expense b. c. Common Stock. Equipment is increased with a debit and cash is decreased with a credit. Cash. A) Expenses increase equity, so an expense account's normal balance is a credit balance. - Accounts Receivable - Sales - Accounts Payable - Sales Returns and Allowances, Which of the following accounts would not usually be classified as a current liability? Which pair of accounts has the same set of rules for debit and credit entries? Service Revenue: I The basic Accounting equation ia as under Assets =. a. C. How quickly the accounts receivable balance increases. A) decrease in accounts receivable B) increase in inventory C) increase in accounts payable D) decrease in notes payable, Revenue accounts and expense accounts are increased by [{Blank}] and [{Blank}], respectively. Debits and Credits by Account D) It is increased with debit entries. Cash increases assets, so it is a debit balance account. b. Browse over 1 million classes created by top students, professors, publishers, and experts. c. Interest payable. Generally the following types of accounts are increased with a credit: t-accounts a visual aid for seeing the effect of the debit and credit on the two (or more) accounts general journal entry the journal entry recorded in the general journal debit Increase an asset: credit Decrease an asset: credit Increase a liability: debit Decrease a liability: In accounting: debit and credit. Cash b. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. d. Land; Accounts Pay. d. Uncollectible Accounts Expense. Cash; Accounts Receivable; Collins, Capital, c. Accounts Payable; Unearned Revenue; Collins, Capital. Depreciation Expense b. It is added to the Bonds Payable balance and shown with long-term liabiliti, Which of the following accounts is increased with a credit? Accounts receivable (AR) is an asset account that tracks the amounts owed to customers until cash is paid. A) Stockholders equity increases. d. Accounts Receivable. When the customer pays in cash, cash increases and so does revenue. Lets say a candy business makes a $9,000 cash purchase of candy to sell in the store. The effect of this transaction is to reverse $200 of expense. (Deferred Expense) a. The ending balance for a revenue account will be a credit. C. an increase in accrued liabilities. A. MARR is a. Unearned Revenue b. Accounts Payable C. Wages Expenses D. Common Stock E. Unearned Revenue, Net Income (accrual basis) $64,000 Depreciation Expense $18,500 Decrease in Accounts Payable $3,450 Decrease in Inventory $3,950 Increase in Bonds Payable $19,500 Sale of Common Stock for cash $31,900 Increase in Accounts Receivabl, Owners' equity accounts are increased by A) Debits B) Expenses C) Credits D) The payment of dividends, Which of the following increases cash? Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which of the following accounts is increased with a credit? Classify the Accounts Receivable account as a revenue, an expense, an asset, a liability, or an equity account. C. They have the same rules of debits and credits as the re, Which account would likely be included in a deferral adjusting entry? Under the accrual basis, for the two months ending February 28, the law firm should record advertising expense of $600. d. Accounts payable. Which of the following accounts would not be included on the Balance sheet? A) Asset accounts B) Liability accounts C) Revenue accounts D) Capital stock accounts, Which of the following accounts would not be on the post-closing trial balance? Service Fees Earned. Accounts payable (AP) tracks all of the bills before they are paid for in cash. Which of the following accounts has a normal debit balance? Protection Home's remaining customers owe the business $1,300. Which of the following accounts increase by means of a debit entry in the ledger? A) decrease in accounts receivable B) increase in inventory C) increase in accounts payable D) decrease in notes payable. Cash; Accounts Receivable; Collins, Capital c. Accounts Paya, Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. a. Prepaid Expense (A) Which of the following accounts is increased by credit entries? b) Allowance for Doubtful Accounts. By clicking Accept, you consent to the use of ALL the cookies. b. Bonds Payable b. Asset account b. Meals and entertainment expense account is increased with a debit and the cash account is decreased with a credit. a. b. d. Divi. The $500 internet expense is recorded in May with a debit and a $500 AP is recorded with a credit. Which of the following accounts would be increased with a credit? a. Collins, Capital; Accounts Receivable; Unearned Revenue. a. debits; debits b. credits; credits c. debits; credits d. credits; debits. a. d. Decrease in accrued T, Which of the following accounts is not affected when an account receivable written off as uncollectible is unexpectedly collected? The equipment account will increase and the cash account will decrease. a. merchandise inventory. Salaries Expense: I, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Carl S Warren, James M Reeve, Jonathan E. Duchac. Accounts Payable c. Cash d. Land e. Advertising Expense, Which of the following is not an asset: a. Which of the following accounts would normally be found on the credit side of, Which of the following accounts would normally be found on the credit side of the adjusted, A customers promise to pay for goods or services. A debit increases the balance and a credit decreases the balance. An Account that would be decreased by a credit is: A) Cash. Rent Expense (E) A. Accounts Payable increases liability, so it is a credit balance account. A. a. b. Prepaid Expenses, Unearned Revenues, Fees Earned. Which of the following asset accounts is increased when a receivable is collected? Transcribed image text: For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Land: B Common Stock c. Accounts Payable d. Notes Payable. This is the opposite debit and credit rule order used for assets. A) debits, decrease B) credits, increase C) debits, increase D) credits, decrease, If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? When the bill is paid for in cash the next month, AP will decrease with a $500 debit and cash will decrease with a $500 credit. Principal payments will reduce the loan with a debit and increase with a credit. How quickly accounts receivable turn into cash. A. accounts payable and equipment B. salaries expense and accounts payable C. accounts receivable and fees income D. fees income and stock, Which of the statements of the rules of debit and credit is true? True False 8. All right reserved. D) It is increased with debit entries. Which of the following accounts increases with a credit. Understand what accounting is, identify the areas or branches of accounting, and examine the types of accountants. What is the decision rule for judging the attractiveness of investments based on external rate of return? Salary Expense and Notes Payable b. Sales c. Inventory d. Delivery Expense, Asset accounts and liability accounts are increased by [{Blank}] and [{Blank}], respectively. Apply the revenue recognition principle to determine 1) Which of the following accounts decreases with a credit? Accounts receivable c. Notes payable d. Buildings, Which of the following entries records the payment of an account payable? Net income for the year was $15,000. Both these accounts increase with a debit and decrease with a credit. b. Which of the following accounts will be closed by debiting the income summary account? a. a. Unearned Revenue b. Would a debit or a credit increase its account balance? a. Which of the following accounts is credited? A. Supplies c. Sales Revenue d. Dividends, Which of the following increases cash? A revenue account a. is increased by debits. a) Accounts Receivable, Revenue, Cash b) Cash, Accounts Payable, Building c) Prepaid Expenses, Building, Patents d) Unearned Revenues, Prepaid Expenses, Cash, Which account below should be debited to record the purchase of merchandise for resale using cash? \text{Stock dividends declared }&300,000 The declaration of dividends reduces retained earnings. All of the following accounts are increased with a debit except: a. Unearned Revenues. a. Unearned Revenue (CR) Decrease to Unearned Revenue: (DR) Noric Cruises Inc. reported the following results for the year ended October 31: Retainedearnings,October1$12,400,000Netincome2,350,000Cashdividendsdeclared175,000Stockdividendsdeclared300,000\begin{array}{lr} C. Decrease Cash with deb. This problem has been solved! c. Allowance for Doubtful Accounts. a. Assets and Liabilities b. Entry to record an accrued expense. Memorize rule: debit equity down, credit equity up. Say the internet bill for $500 arrives for May, but is not due until the next month. C) Decrease in assets, decrease in liabilities. Which account would likely be included in a deferral adjusting entry? Would a debit or a credit increase its account balance? a. All other trademarks and copyrights are the property of their respective owners. Supplies. Herman, Capital (CR) a. cash and notes payable b. salaries expense and retained earnings c. sales revenue and accounts receivable d. common stock (capital stock) and accounts payable. Cash; Accounts Receivable; Collins, Capital. b. How much advertising expense should Pink Peonies Law Firm record for the two months ending February 28 under the a) Common stock b) Account payable c) Accounts receivable d) Retained earnings e) Unearned service revenue, Which item would not appear on a Balance Sheet? Which of the following would not be included on a balance sheet? net income (loss) on the income statement. Accounts Receivable c. Accumulated Depreciation d. Smith, Capital, Working capital needs are: a) increased the longer it takes to collect accounts receivable. b. C) A trial balance has the same format as a balance sheet. Is the cash account an asset, a liability, or an owner's equity account? d. Cash. In debit and credit terms, Asset debits = Liability credits + Equity credits. Which of the following accounts increase with credits? Accounts Payable c. Work-in-Process Inventory d. Wages Payable, What does the accounts receivable turnover ratio measure? D. accounts receivable to be debited for $500. Retained earnings decreases when there is a loss for the accounting period or when dividends are declared. 7. 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