.Account titles of liabilities often include the term “payable.” b.Liabilities are debts owed to outsiders. c.Liabilities do not include wages owed to employees of t

Q: Under the double-entry system of accounting, a debit represents a decrease to a liability account.…

A: Debit and credit: The transactions of the company will affect the account balances either by…

Q: The debts written of as bad, if recovered subsequently are a. Credited to bad debts recovered…

A: Debtors are the persons to whom business has made credit sales and amount has not been received yet.…

Q: A customer of Triple D can also be a supplier to Triple D and then, if the creditor’s amount is more…

A: A creditor is the entity to whom the company owes money whereas a debtor is an entity who owes money…

Q: On a ban reconcialiation, customer's checks that are returned for lack of funds would be a.…

A: PLEASE LIKE THE ANSWER CORRECT ANSWER IS "a" i.e.,  deducted from the balance per company records

Q: What is the journal entry to record payment of bad debt?

A: When bad debts are recovered cash/bank account shall be debited and bad debts recovery account shall…

Q: Explain in details the accounts receivables and bad debts?

A: Company is carrying the sales activity after performing the cost ascertainment method. In order to…

Q: ollowing situations does not base an accounting measure on a present value? Prepaid insurance ,…

A: It analyzes comprehension of how accounting measures and financial reporting may or may not require…

Q: Which of the following accounts would not appear on a balance sheet a. Deferred charges b.…

A: Balance Sheet is a financial statement that records all the assets, liabilities and equity of the…

Q: Are all expenditures a debit account? Are they debit accounts, despite the fact that Owner's Equity…

A: Here is the Answer

Q: state the differences between unearned revenue and accounts payable? both accounts are liabilities…

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

Q: An account payable represents an amount a company owes to a vendor or supplier. True False Can't be…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: s loans money to another party or sells goods or services to another party on account or has…

A: The right answer is all the above

Q: EITHER TRUE OR FALSE. Describe why the assertion is incorrect if it is in fact incorrect. 1. Cash…

A: Cash refers to the amount of monetary value that is available in physical form in the hand of an…

Q: Allowance for Doubtful Accounts will appear on the balance sheet as a. a contra asset. a. a contra…

A: Allowance for doubtful accounts is prepared for the estimated uncollectible accounts in the future.…

Q: Promissory notes are not used

A: Option a is wrong because when the business borrows money, promissory note can be issued to the…

Q: uUnder the double-entry system of accounting, a debit represents a decrease to a liability account.…

A: Journal entry is the practice of recording commercial transactions for the first time in the books…

Q: Which of the following statements is false?(a) Receivables include equity securities purchased by…

A: Receivables refers to the amounts to be received within a short period from customers upon the sale…

Q: In the deposit function, banks treat interest as income. True False

A: The deposit function function is the creation of deposits through credit extension, either in the…

Q: 1.Define liabilities in your own words. 2.What are the essential characteristics of an accounting…

A: Solution:- 1)Definition of liability as follows under:- Liabilities are debts of a company or…

Q: Liabilities represent amounts owed to outsiders (creditors) expected to be received from customers…

A: The balance sheet represents the financial position of the business. It records the assets and…

Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…

A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…

Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Which one of the following statements is false? a. Consumer loans are loans banks advance to…

A: Solution:- Loans means the advances made by the bank to the customers, while deposits means the…

Q: 38) 38) A receivable occurs when a business, A) loans money to another party B) sells goods or…

A: Accounts payable and Accounts receivable are two sides of the same coin. Whereas accounts payable…

Q: GAAP does not allow cash basis accounting to be used in external financial reports.   True or…

A: GAAP gives the accounting rules and standards that are used to prepare the financial reports of an…

Q: Contingent liabilities are not recorded in the financial statements. True False

A: As per IAS 37, Provisions, contingent assets and contingent liabilities  A contingent liability is a…

Q: For the accounting period in which a short-term loan is paid off, which of the following correctly…

A: A short-term loan refers to an obligation of an entity that is going to be settled by the outflow of…

Q: The allowance method for uncollectible accounts a. Is required by Generally Accepted Accounting…

A:

Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a…

A: Generally, Assets have a Debit Balance If any account generally has a debit balance and if a…

Q: Which adjustments need to be recorded in the accounting records? Those that affected the bank…

A: Introduction: All the paperwork and books used to create financial statements or records necessary…

Q: A basic difference between loss contingencies and “real”liabilities is: a. Liabilities stem from…

A: Contingency is a liability that may arise in the future while the real liability has already…

Q: What would signify the net amount that a business foresees to receive when the allowance method of…

A: Allowance method indicates the computation of estimated bad debts which the company expected to…

Q: In accounting for bad debts, how do the income statement approach and the balance sheet approach…

A: A company made credit sales to its customers. The mount which is not received from customers is…

Q: Accounting If cash collected from customers is not yet recorded as revenue, what happens to it?

A: Sales of cash and the collection of accounts receivable are two ways to obtain money. The cash sales…

Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…

A: A transaction is a business engagement that has an economic effect on a financial statement and is…

Q: Why does the direct write-off method of accounting for bad debts usually fail to match revenues and…

A: Direct write-off method does not make allowance or estimation for uncollectible accounts, instead…

Q: An expense represents a liability a cost of doing business none of the above a withdrawal

A: Liability represents the amount which will be paid by the entity in future as a result of present or…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is