Recipes, Inc. purchased $2,000 of supplies on account. Under the accrual basis of accounting, no entry is made until the amount is paid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A T-account is a summary device with credits posted on the left side of the vertical line. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Under accrual basis accounting, an expense is recorded only when cash is paid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A shortened form of the ledger is called a ________. A) trial balance B) balance sheet C) chart of accounts D) T-account ANSWER D
Date: September 2nd, 2020
Under accrual basis accounting, revenue is recorded only when cash is received. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
An asset account is increased by a debit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A debit always means a decrease, and a credit always means an increase. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A liability account is increased by a debit. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which of the following accounts decreases with a debit? A) Accounts Receivable B) Notes Payable C) Cash D) Rent Expense ANSWER B
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
