A credit may represent a(n): increase in an asset account. increase in a liabilityaccount. decrease in the capital account. increase in an expense account.

Debit Amounts:Accounts having typical debit balances include, for example:Cash, receivables,…

Answered: A credit may represent a(n): increase…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The payment of past debt by the entity will cause a decrease in asset due to the outflow of cash, and what corresponding effect on liabilities? a. No effect b. Decrease c. The transaction would cause no effect on both accounts. d. Increase
T accounts are used to reflect increases and decreases in individual assets, liabilities, and equity accounts. Which of the following statements is true? For liability accounts: Increases are recorded on the left side (debit side) of liability T accounts. For Revenue accounts: Increases are recorded on the left side (debit side) of revenue T accounts For Asset accounts: Increases are recorded on the left side (debit side) of asset T accounts. For Asset accounts: Increases are recorded on the right side (credit side) of asset T accounts.
True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?
A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liability
What types of short-term credit are classified as accrued liabilities?
In the case of a bank's accrued interest ?revenues, which occurs first Earning The Interest Revenues Nothing Receiving The Interest From The Borrower
What is incorrect here? Available options are: Accounts Payable, Accounts Receivable, Accumulated Depreciation, Bond Premium, Bonds Payable, Building, Cash, Common Stock, Cost of Goods Sold, Delivery Expense, Depreciation Expense, Discount on Bonds Payable, Dividends Declared, Finance Costs, Goodwill, Intrest Expense, Intrest Income, Intrest Payable, Intrest Receivable, Land, Merchandise Inventory, Micellanious Expense, Other Expenses, Sales, Sales Discounts, Sales Returns and Allowances, Finance Costs, Goodwill
Which of the following groups of accounts increase with credits? O a. Accounts Receivable, Prepaid Insurance, Unearned Rent O b. Accounts Payable, Accounts Receivable, Fees Earned O c. Accounts Payable, Unearned Rent, Fees Earned O d. Prepaid Insurance, Unearned Rent, Fees Earned
Which one of the following will decrease net working capital? Select one: a. A decrease in accounts payable. b. A sale of inventory at a profit. c. A sale of a fixed asset for cash. d. An increase in accounts receivable. e. An increase in accounts payable.
Credits increase assets and decrease liabilities. decrease assets and increase liabilities. increase both assets and liabilities. decrease both assets and liabilities.
Net working capital increases when: A. a credit customer pays for his or her purchase B. inventory is sold at cost. C. fixed assets are purchased for cash D. inventory is purchased on credit
Simple interest refers to interest on a loan computed as a percentage of the loan amount. Compound interest refers to the process of, investing your money. saving your money. C a loan amortization. a loan computed at a nominal interest rate. E earning interest on interest.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

A credit may represent a(n): increase in an asset account. increase in a liability account. decrease in the capital account. increase in an expense account.