Which of the following accounts increases with a debit? A) Cash B) Interest Payable C) Accounts Payable D) Common Stock ANSWER A
Date: September 2nd, 2020
Cash is a(n) ________ account and has a normal ________ balance. A) asset; debit B) liability; credit C) liability; debit D) asset; credit ANSWER A
Date: September 2nd, 2020
“All debits are increases and all credits are decreases.” Is this a correct statement? Explain your answer. What will be an ideal response ANSWER This is not a correct statement. The double entry-system of accounting is a system of accounting in which every transaction affects at least two accounts. As transactions are analyzed and recorded, […]
Date: September 2nd, 2020
The Common Stock account is increased by a debit. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The Dividends account is increased by a debit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
All asset accounts and equity accounts increase with a debit. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The balances in the liability and revenue accounts are increased with a credit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following accounts decreases with a credit? A) Cash B) Common Stock C) Accounts Payable D) Notes Payable ANSWER A
Date: September 2nd, 2020
Under cash basis accounting, revenue is recorded when it is earned, regardless of when cash is received. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The major difference between a cash basis accounting system and an accrual basis accounting system is the timing of recording revenues and assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
