The effect of payment made to creditors of the business would be a. Increase an asset and increase a liability O b. Decrease an asset and decrease owners equity Oc. Increase an asset and decrease other asset O d. Decrease an asset and decrease liability
Q: Question #2 For each of the following categories, state concisely a transaction that will have the…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: b. Give an example for each of the following types of transactions for the accounting equation: i.…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: 2. When a business buys supplies on account, assets ____. a. increase b. decrease c. increase and…
A: Accounting to the accounting equation, each and every transaction has two impacts one is Debit other…
Q: Describe a transaction that would: Increase both an asset and a liability. Increase one asset…
A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…
Q: Land is purchased on credit. For this transaction, identify the effect on the accounting equation.…
A: Accounting Equation is a relation between assets, liabilities and stockholders’ equity. The…
Q: Give an example of business transactions that would: Cause one asset to increase and another asset…
A: Business transaction Business transactions are the transactions that are recorded in monetary…
Q: Revenues are: O A. decreases in assets resulting from delivering goods or services to customers. B.…
A: Revenue is the amount of money that a business receives on conducting business i.e. sale of goods or…
Q: Which of the following is an example of liability of a business? a. prepaid insurance. b. cash. c.…
A: UNEARNED REVENUE : It is the revenue received in advance by a person or company before the delivery…
Q: provide an example of a transaction that would: increase one asset account but not change the amount…
A: Increase in one asset account but not change the amount of total assets.Transaction: Purchase of…
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: Owner's equity can be increased through a.expenses exceeding revenues. b.investments by the owner.…
A: Stock holders equity: Common stock is one of the parts in the stockholders’ equity. The common stock…
Q: A purchase of an asset on account a. decreases expenses. b. decreases owner's equity. c. increases…
A: Accounting Equation :— It is the relationship between assets, liabilities and owner's equity.…
Q: Which of the following statements concerning the debit-credit feature of the accounting equation is…
A: A debit entry increases an asset or expense account and decreases liability and equity account and…
Q: An increase in economic benefits or increase in assets or decrease in liability resulting in…
A: An increase in assets will increase the operational efficiency of the company. A decrease in…
Q: Debit: decrease both assets and liabilities. a. increase assets and decrease Ob. liabilities.…
A: The accounting records are made on two basis of debit and credit.
Q: Services are provided for customers who pay for their services immediately. What effect does this…
A: Accounting Equation: It is the balance sheet equation where total assets are equal to the sum of…
Q: Question #2 For each of the following categories, state concisely a transaction that will have the…
A: Since there are multiple questions asked, answer will be given for first question only, to get other…
Q: Give an example of a transaction that has each of the following effects on the accounting equation:…
A: The accounting equation refers to the equation of the balance sheet. It is based on the method of…
Q: Which of the following is the correct ending to the next sentence? When an owner makes a withdrawal…
A: Any withdrawal for personal use affects drawing account. Drawing account has a normal debit balance.…
Q: Depletion is: A revenue for the business A liability for the business An asset for the business An…
A: Depletion is an accounting and tax concept used most often in the mining, timber, and petroleum…
Q: What are the two primary items that bring about a change in proprietorship during the accounting…
A: Change in proprietorship means the items which affects the owner's capital. There are two reasons…
Q: Ali purchased equipment on credit. What is the effect of this transaction? O a. increase one asset…
A: Equipment is increased. Accounts payable is increased.
Q: Owner's equity can be increased through a. withdrawals by the owner O b. investments by the owner O…
A: The question is based on the concept of Accounting Theory.
Q: Give an example for each of the following types of transactions: A)Increase in one asset, decrease…
A: We have the following question: Give an example for each of the following types of transactions:…
Q: Which of the following direct effects on the accounting equation is not possible as a result of a…
A: Accounting equation: Assets = Liabilities + Shareholder's Equity
Q: When a business buys supplies on account, assets ____. a. increase b. decrease c. increase and…
A: The journal entry for the transaction is : Date Account journal Debit $ Credit $ Supplies $$$…
Q: The account Gain (Loss) on Sale of Investments should be included on the: A. balance sheet as an…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: If a business receives a computer from the owner as an investment this would Decrease assets and…
A: Additional Investment in the business organization is an increase in fixed assets and also an…
Q: Which among the following transactions would have no effect on equity? O a. Drawings made by the…
A: Equity is the amount of investment made by owner of a company.it has effect of profit or loss and…
Q: 3. An example of a debit entry is OA. a decrease in an asset account. OB. an increase in an asset…
A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…
Q: For each of the following cate ories, state conCisely a transaction that will have the required ef-…
A: Effects of a business transaction: In accounting, any business transaction has a two-fold impact.…
Q: If an expense is incurred but not paid, then a) Liabilities will increase b) Stockholder's equity…
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…
Q: Amount owed by the business to outsiders or whatever is payable by a company is known as ___. a.…
A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…
Q: Owner's equity can be increased through _____. a. withdrawals by the owner b. purchase of assets by…
A: Solution: Withdrawl by owner decrease the owner's equity Purchase of assets by cash do not affect…
Q: Describe a transaction that would: a. Increase both an asset and a liability. b. Increase one asset…
A: Assets means something which is owned by business like furniture , machinery . Liability means the…
Q: For each of the following categories, state concisely a transaction that will have the required…
A: a. Increase an asset and increase a liability. Borrowed $10,000 from bank in exchange of 1 year note…
Q: Decrease an asset and decrease owner’s equity
A: Correct answer :- C Decrease an asset and decrease owner’s equity.
Q: Revenue has the effect of: A.increasing assets and decreasing liabilities B.increasing assets and…
A: Revenue is generated through the sale of goods or providing services to the customer, it increases…
Q: 1. A credit may signify: A. Increase in asset B. Increase in liability C. Decrease in owner's equity…
A: Since there is more than 3 subparts are given, SME is going to answer only (1) (2)(3)
Q: According to the rules of debit and credit for balance sheetaccounts:a. Increases in asset,…
A: Balance Sheet accounts for assets & liabilities as well as equity. This is a process that is…
Q: Net loss: O A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of…
A: The equity includes the capital that relates to shareholders.
Q: For each of the following categories, state concisely a transaction that will have the required…
A: All expenses, losses, and assets should be debited and all income, gain, and liabilities should be…
Q: .Expenses represent a reduction in ___. A.assets B.revenue C.liability D.equity 2.You are presented…
A: Assets and liabilities and equity are part of balance sheet, revenue is part of income statement
Q: For each of the following categories, state concisely a transaction that will have the required…
A:
Q: Revenue has the effect of: A.increasing assets and decreasing liabilities B.increasing assets and…
A: Accounting equations always have a dual effect on each transection.It is a basic method of recording…
Q: Owner's equity can be increased through, O a. withdrawals by the owner O b. expenses exceeding…
A: Withdrawals decreases the owner's equity. Expenses exceeding revenues results in loss further…
Q: Debits Select one: a. decrease liabilities and increase assets. b. increase both assets and…
A: Solution:- Introduction:-
Step by step
Solved in 2 steps
- What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changesThe effect of payment made to creditors of the business would be a. Decrease an asset and decrease liability O b. Increase an asset and decrease other asset O.c. Decrease an asset and decrease owners equity d. Increase an asset and increase a liabilityGive an example of a transaction that results in: a. A decrease in an asset and a decrease in a liability. b. A decrease in one asset and an increase in another asset. c. A decrease in one liability and an increase in another liability.
- Payment to a creditor will Decreases an asset and decreases owner's equity Increases an asset and decreases another asset Decreases an asset and decreases a liability Decreases an asset and increases in liabilityDescribe a transaction that would: Increase both an asset and a liability. Increase one asset and decrease another asset. Decrease both a liability and an asset. Increase both an asset and retained earnings. Decrease both an asset and retained earnings.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
- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.Which of the following decreases owners equity? A. investments by owners B. losses C. gains D. short-term loansDescribe a business transaction that will do the following: a. Increase an asset and increase a liability b. Decrease an asset and decrease a liability c. Decrease an asset and increase an expense d. Increase an asset and increase owners equity e. Increase an asset and decrease an asset f. Increase an asset and increase revenue
- For each of the following cate ories, state con:Cisely a transaction that will have the required ef. fect on the elements of the acc ounting iquation.' EXERCISE 2.7 Effects of Business Transactions a. Increase an asset and inerease a liability. b. Decrease an asset and decrease a liabilitv. c. Increase one asset and decrease another asset. d. Increase an asset and increase owner's eyuit e. Increase one asset, decrease another asset, and increase a liability. LO 31. If a Revaluation of an asset is done for the first time and there is a revaluation gain, this should be shown in a. Other Comprehensive Income as a Negative figure b. Other Comprehensive Income as a Positive figure c. The Statement of Profit and Loss Account as an Expense d. The Statement of Profit and Loss as Incomea. record the entry to adjust asset values to fair value b. record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and eliminate deficit.