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

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Similar questions

Communication (income statement): The balance of Interest Expense from accruing interest to be paid has what effect on the income statement in the current year? Multiple Choice A. Decreases net income. B. No effect. C. Increases net income.
Face value of a note payable plus interest is called Omaturity value. O face value. O proceeds. Oprincipal.
Interest payable, retained earnings, and sales revenue have a balance whereby credits normally exceed debits * True False
Current account benefits for the account holder and borrowers؟
How are gain contigencies reported in the financial statements? a. a contingent account receivable b. an accrued revenue c. a deferred revenue d. not at all
When the amount of rebate on bills discounted shown in the adjustments, then it has to be: a. Deducted from discounts received on bills and shown in other liabilities b. Deducted from discounts on bills purchased and shown in fixed assets c. Deducted from discounts received on bills and shown in other assets d. Added to discounts received on bills and shown in other liabilities
What does it mean when you have a debit balance of accrued interest income? Does a Debit balance accrued interest inome a deduction in net income?
Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages payable O d. Accrued expense
69. Claim against assets are represented by A. saved earning B. retained earnings C. maintained earning D. saving account earning
The original amount of money in a loan transaction is known as what?
Which of the following is not affected by a change in interest expense? a. gross margin b. EBIT c. ROE d. a. and b e. all of the above
Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C. Deferred revenue. D. An unused line of credit.

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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.