Expenses are increased with: A. Debits because they decrease stockholders' equity B. Credits because they decrease stockholders' equity C. Credits because they increase stockholders' equity D. Debits because they increase stockholders' equity

Q: What increases the Assets & Equity? A. Fresh Capital B. Debts paid off C. Revenues D. None of the…

A: When Fresh Capital is introduced by the owner in the business, Cash Account increases on the Assets…

Q: Accounting can help finance by: Timely delivery of appropriate accounting information Keeping the…

A: Accounting is the process of recording the transaction in books, basis which financial data is…

Q: What causes the decrease in Assets? A. Cash Purchases B. Liabilities C. Payment of Expenses D.…

A: Assets are a group of various resources that generate the revenue of the company. In this group,…

Q: Solve

A: When a business pays off a note payable, it uses cash (an asset) to settle a liability. This results…

Q: An investment of cash by stockholders into the business willa. decrease total assets.b. increase…

A: When company requires funds, it can obtain funds by issuing debentures or by borrowing from banks…

Q: Services are provided for customers who are sent bills for the amount they owe. For this…

A: Accounting Equation is a relation between assets, liabilities and stockholders’ equity. The…

Q: Earning revenue a.increases one asset, decreases another asset b.decreases assets, increases…

A: Earning Revenue will result in increase in Assets and increase in Shareholder's Equity . For eg Cash…

Q: Which of the following accounts is increased by a debit? Common Stock   Accounts Payable…

A: Common Stock - It is the share capital of a company in the form of shares held by shareholders,…

Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…

A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…

Q: Which one of the following is a nominal (temporary) account?   Select one: Supplies Dividends…

A: Under traditional accounting, the accounts are categorized as nominal accounts and real accounts.…

Q: Which of the following is the basic accounting equation? a.Assets = Stockho ' Equity - Liabilities…

A: The correct option is  b.Assets - Liabilities =Stockholders' Equity

Q: An income statement is sometimes called thea. statement of financial position.b. owners’ equity…

A:

Q: The effects of paying salaries for the current period are to:a. increase assets and increase stock-…

A: Salary is an expense for a company and an obligation due towards the employees working in that…

Q: It represents the cash or other assets withdrawn from the business by the owner for the personal…

A: Dividends are distribution of profits of a company to its shareholders. Hence, option C is wrong.

Q: Which of coming up next isn't a money outpouring?    a) Increase in Prepaid costs    b) Increase…

A: Money outpouring means a situation when money is outpoured or outflown from the business.

Q: The liabilities on a balance sheet are represented by which of the following? Choose one answer.…

A: Balance Sheet: It is also known as the Statement of Financial Position. It reports the financial…

Q: Which business transaction will affect the quick ratio?     a. Purchase a fixed asset with money…

A: The quick assets ratio is calculated as quick assets divided by current liabilities.

Q: Which one of the following will increase shareholders' equity, all else held constant?    Select…

A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…

Q: If the allowance method is used, how does recording the recovery of an uncollectible account affect…

A: Solution: Recovery of uncollectible account is recorded by making two entries as under: 1.…

Q: Fill in the blanks below with the word “debit” or “credit.”a. The balance of an asset account…

A: Normal balance:   Normal balance refers to the excess of amount on one side, over the amount on the…

Q: Which of the following statements are true? 1. Debits represent decreases and Credits represent…

A: Every debit has his credit, So it should be equal.

Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…

A: Revenue: Revenue or Sales revenue is the amount earned by the company by selling the goods or…

Q: does accounts payable and cash count towards ending retained earnings

A: Closing entries are the entries which are prepared to close all the temporary accounts and then the…

Q: The Statement of Stockholders' Equity includes an adjustment for:  a Only Retained Earnings.  b…

A: The statement of stockholders' equity can be defined as the statement showing the capital components…

Q: What happens when a business purchases insurance with cash? O assets both increase and decrease O…

A: Purchase of insurance is essential for businesses to avoid the unforeseeable huge loss due to…

Q: Which of the following will result when a dividend is paid? A debit to dividends payable. A credit…

A: Concept used : When dividend is paid then journal entry will be to debit the dividend payable and…

Q: If a company borrows more than it pays in interest. Select one: O a.Cash flow to stockholders will…

A: As per international  accounting  standard  7 on cash flow statement, if a company  borrows  it will…

Q: Performing services on account:

A: Performing services on accounts means amount is to be received in future for the services rendered…

Q: The type of account and normal balance of retained earnings is  stockholders equity, credit…

A: A company generally does not distribute all its earning amongst shareholders as dividend. A portion…

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…

Q: why b is incorrect? *  which is the correct ans

A: Solution concept The accounting equation is expressed as Asset = liabilities + equity The…

Q: All business transactions can be stated in terms of

A: Accounting equations: Accounting equations are on the basis of the dual aspect concept of…

Q: Sales revenue is reported in the stockholder’s equity section of the balance sheet? True/false

A: Sales revenue: Revenue generated from the sales called sales revenue. Sales revenue = selling price…

Q: Interest Select one: a. The profits made on investments b. Buying and selling stocks or shares for…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : In…

Q: If expenses are paid in cash, then Select one: a. assets will decrease b. liabilities will decrease…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: The balance in the Dividends account is closed off to:

A: (C). Retained earnings.

Q: Receiving cash from a customer to pay for a previously recorded account receivable will: O increase…

A: When a customer pays cash to settle a previously recorded accounts receivable, there is a simple…

Q: For the items listed below, indicate how the item affects equity (increase, decrease, or no impact.…

A: Statement on owner's equity is the part of the financial statement which is prepared to calculate…