If an asset account is credited, it indicates O An error. O An increase in the asset. O A decrease in the asset. O A credit was made to a liability account.
Q: Indicate for each transaction whether the assets (A), liabilities (L) or owner’s equity (OE)…
A: General points - If we purchase an asset by cash, the assets side of the balance sheet has nil…
Q: A company fails to recognize an expense incurred but not paid. In dicate which of the following…
A: The journal entry is as follows
Q: Failure to record depreciation at the end of an accounting period results in a. Overstated expenses…
A: The business organizations are required to charge the depreciation expense on their assets so that…
Q: Assets that are NOT expected to provide benefits for a number of accounting periods are called…
A: Solution: Assets that are NOT expected to provide benefits for a number of accounting periods are…
Q: b.) Credit
A: Prepayment is an accounting term referred to the types of expenses not incurred yet but for which…
Q: Which of the following is created by the adjusting entry to recognize interest expense incurred but…
A: Adjusting entries are to be reported at the year end to make adjustments to certain accounts.
Q: Which one of the following statement is TRUE? a. Cash is non-current asset b. Outstanding expenses…
A: Current assets are all those assets that are realizable to cash within one year such as accounts…
Q: Given the dual effects of accountable events, an decrease in an asset cannot possibly be accompanied…
A: Assets = Liabilities + Stockholders equity Every transaction has dual effect . The question is…
Q: A credit to a liability account a) indicates a decrease in the amount owed to creditors. b) is an…
A: Amount owed by the company to the outside persons such as suppliers, bank etc are called…
Q: What is the effect of omission of accrued income in assets at the end of the year of error? a.…
A: Accrued income: Increases assets Increases Owners' equity
Q: The entry to record depreciation is an example of an adjusting entry: a. to apportion a recorded…
A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…
Q: Which of the following is an asset account? O A. Unearned Revenue B. Notes Payable O C. Accounts…
A: Asset accounts means account related to resources of the business that it owns. It can be current…
Q: The adjusting entry for accrued revenues includes O a. debit to an asset account. O b. credit to an…
A: Introduction: A general ledger entry made at the end of an accounting period to record any…
Q: A debit to an asset account indicates: Select one: O a. a credit was made to a liability account O…
A: Normally all assets accounts should have debit balance. All liability and capital accounts should…
Q: Adjusting entries prepared to record unearned revenue results in: An increase in an asset account…
A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…
Q: acquisition of vehicle is recorded twice, a. asset is overstated. b. expense is overstated. c.…
A: acquisition of vehicle results in inflow of vehicle and outflow of cash
Q: As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously…
A: Prepaid assets are those assets which consists of advance payments for goods and services that are…
Q: Which of the following is not accomplished by an adjusting entry? A. Updating liability and asset…
A: Adjusting entries are made to allocate income and expenses to their proper period.
Q: If the unearned interest is credited in the adjusting entry, which of the following will be…
A: An Unearned interest refers to an interest income collected by a lending institution before they…
Q: Which of the following is Not correct An increase in a liability may result in a decrease in owner's…
A: The accounting equation is known as the equation that describes the transaction in accounting form.…
Q: Accounts payable would appear on the balance sheet as a(n) a. asset b. liability c. unearned…
A: Account payable is the account that represents the accounts from where purchases of inventory have…
Q: In adjusted P & L account, depreciation on fixed assets will be [A] debited [B] credited [C]…
A: The Profit and Loss Adjustment Account is prepared to account for any error or omission; thus, these…
Q: Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical…
A: In accounting, adjusting entries are journal entries usually made at the end of an accounting period…
Q: Choose the correct statement below: A. Unearned income is income earned and already collected. B.…
A: The deferred expenses are the expenses incurred but not yet due for payment. The deferred revenue is…
Q: If the going concern assumption is not made in accounting, discuss the differences in the amounts…
A: Financial statement: A formal record of business transactions that record, analyse, and summarize…
Q: There will be a when liability, capital, and revenue accounts decrease O a. neither debit nor credit…
A: Introduction: Nominal account rule: As per nominal account rule Debit all expenses and losses ,…
Q: A ____ will cause Accumulated Depreciation to decrease. A. Debit B. Credit
A: Particulars debit credit Depreciation Amt Accumulated depreciation Amt
Q: Which of the following is not accomplished by an adjusting entry? A. Updating liability and asset…
A: Adjusting entries are prepared to ensure the financial statement is following the accrual base…
Q: When an asset is purchased on account, the credit side of the entry is to a liability account an…
A: Introduction:- The following golden rules used in accounting as follows under:- Personal:- Debit…
Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? Group…
A: The correct option with proper explanation are as follows
Q: As per double entry rules, when will you DEBIT? a. If there is decrease in asset b. If there is…
A: Debit Credit Assets Increase Decrease Liabilities Decrease Increase…
Q: A decrease in an asset account is a: A. Debit entry to the asset account B. Credit entry to the…
A: Assets are the resources that are owned by the entity for the purpose of using them to run the…
Q: The effect of payment made to creditors of the business would be O a. Decrease an asset and decrease…
A: An Payment of any liability will lead to decrease in asset and decrease in liability
Q: If the effect of the credit portion of an adjusting entry is to increase the balance of a liability…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: Which of the following is created by the adjusting entry to recognize interest expense incurred but…
A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…
Q: hance, a profit is period exceeds the amount of net assets at the beginning of the earned only if…
A: Physical capital maintenance : The physical capital is where capital of an organisation is regarded…
Q: Assets are increased by debits and liabilities are decreased by credits. TRUE FALSE
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current…
A: Advance is the money which is given by one party (customer) in advance to the other party (other…
Q: Return inward appearing in trial balance is deducted from Select one: a. Asset O b. Purchases c.…
A: Introduction: Trial balance: After posting all the balances to ledger accounts trial balance is…
Q: ncreases in asset accounts are recorded on the debit side the right side the dark side the credit…
A: Assets are resources carrying economic benefits that are owned and controlled by an entity. Examples…
Q: An increase in an asset account is a: A. Debit entry to the asset account B. Credit entry to the…
A: Assets are those tangible and intangible things in the business which the business has right to use…
Q: The account type and normal balance of Fees earned is a. asset, debit b. expense, debit c. revenue,…
A: In accounting, there are three types of accounts:1. Personal account: This account represents the…
Q: Which of the following could be charged to the profit and loss account as an expense? O A…
A: Profit and Loss account provides overview about all incomes and expenses of an entity for a…
Q: Allowance for doubtful accounts is an example of a. Asset account b. Expense account c. Contra asset…
A: solution:- Introduction:- Allowance for doubtful accounts means as follows under:- Allowance for…
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- true or false Asset accounts normally have a credit balanceWhich of the following approaches is used to determine the recognition of an impairment loss of financial assets? Select the best answer. a. O An approach that reflects the losses expected over the contractual life of the asset b. A loan is impaired if it is more likely than not that a creditor will be unable to collect all amounts due. c. A dual-measurement expected credit loss approach that is based on a financial asset's credit risk at inception and changes in credit risk from inception, as well as the applicability of certain practical expedients d. O Present value of contractual cash flows approachA basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from past transactions; loss contingen-cies stem from future events. b. Liabilities always are recorded in the accountingrecords, whereas loss contingencies never are.c. The extent of uncertainty involved. d. Liabilities can be large in amount, whereas loss contin-gencies are immaterial.
- Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the transaction recorded as a debit or as a credit if it has the effect of lessening a liability?Which of the following is not an example of an asset? Group of answer choices Supplies. Accounts receivable. Prepaid Insurance. Deferred revenues.41.Which of the following shall be taken into consideration when measuring and recognizing impairment loss on receivables?A. Past experiences on the collectability of the receivablesB. Present condition of the debtor, including the present economic environmentC. Future expectations based on information that are available without undue cost and effort a. A, B and C b. A and B only c. A only d. B only
- Q:How is accidental loss of goods treated in final account in case: a: Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.Which one of the following is not one of the factors in computing depreciation? Cost price Inadequacy Salvage value Exchange price Which of the following account is debited when account payable is converted into note payable? 直21. Statement 1: Under simplified approach for the impairment of receivables, an entity measures its expected credit loss without applying the 3 stages under the general approach.Statement 2: The changes in the loss allowance balance are recognized in profit or loss as an impairment gain or loss. a. Only Statement 1 is true. b. Both statements are false. c. Both statements are true. d. Only Statement 2 is true.
- Given the dual effects of accountable events, an decrease in an asset cannot possibly be accompanied by a (an): A. Decrease in liability B. Increase in owner's equity C. Increase in an asset D. Increase in expenseWhich of the following is not part of the definition of an asset O a. Control of a resource O b. Resulting from a past event O c. Inflow of economic benefits Od. During the accounting period18. Which of the following contingencies is usually not accrued in the accounts? a. uninsured risk of property loss by fire or other hazardsb. guarantees of indebtedness of othersc. noncollectibility of receivablesd. agreements to repurchase receivables that have been sold