A credit to a liability account a) indicates a decrease in the amount owed to creditors. b) is an error. c) must be accompanied by a debit to an asset account. d) indicates an increase in the amount owed to creditors

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: Bad debt recovered is a payment received from account receivable from s client or customer whose…

A: Bad debts expense is charged when it is expected that payments from accounts receivables would not…

Q: How is a correction of an accounting error made?

A: Accounting error:   It is a non-fraudulent discrepancy in the financial documents of an…

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: The accrual basis of accounting requires adjustments to be made for prepaid, unearned, and accrued…

A: Adjustments in accounting are made at the end of the period in order to show the correct financial…

Q: Match each of the following terms with the appropriate definitions. A. Maker of a note B. Bad debts…

A: Accounts receivables are those customer accounts to whom credit sales has been made, but amount not…

Q: A credit of a debt account can in the case of the counter-accounting (debiting) involve a booking of…

A: Debt refers to the amount that is due to be paid to the outsiders. The debt can be recorded as…

Q: Statement 1: Under simplified approach for the impairment of receivables, an entity measures its…

A: Loss allowance balance is the balance which is also known as provision means this balance represents…

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: On the Balance Sheet, the Allowance for Doubtful Accounts account is: Osubtracted from the Accounts…

A: Note: Under Direct write off method, bad debts expense are recorded when company is sure that amount…

Q: true or false  Asset accounts normally have a credit balance

A: Assets are debited when increased and credited when decreased. So the balance remains at the end…

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: From page 5-3 of the VLN, what is the appropriate relationship to compute net accounts receivable?…

A: Customers who have received goods or services from a business but haven't yet made payment are said…

Q: The accounts related to the revenue cycle include all of the following except:     A.…

A: Revenue  cycle  generally  consist of  1.order received from the customer 2. process customer order…

Q: The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a…

A: Consistency Characteristic: Consistency is a concept that asserts that once you have adopted an…

Q: The Allowance for Doubtful Accounts account is a contra asset account to Accounts Receivable. True O…

A: ACCOUNT RECEIVABLE   Account Receivable is Also Known as Trade Receivable. Account Receivable is a…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: If the statement of financial position error is discovered in the year of error, what action is to…

A: Errors mean the data entered in the financial system is not as per accounting standard. There has…

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: If an account payable is left off the end of the period balance, what are the possible other…

A:

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: The adjusting entry for a bad debt expense has a debit and credit to what account.     Bad debt…

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: An expense account normally has a credit balance. True or False

A: Expense Account - It includes day-to-day costs that are incurred in a normal course of business. For…

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: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Normal balance: Normal balance of an account refers to the heavier side of the account vis-à-vis the…

Q: Under the allowance method for uncollectible receivables, the entry to record uncollectible-account…

A: Allowance method: It is a method for accounting bad debt expense, where uncollectible accounts…

Q: A contra account will not be listed immediately after its related account. O be potentially…

A: A contra account is the type of account that has balance that is opposite of the normal balance for…

Q: Distinguish the difference between Bad Debts and Provision for Doubtful Debts, indicating the…

A: When a account receivable is clearly identified as the amount will not be received then such account…

Q: If a fictitious sale has been recorded, this affects the a) existence of sales. b) valuation of…

A: The sale is a transaction takes place between two parties known as the seller and the buyer. Here,…

Q: When is bad debts expense recorded when using the direct write-off method?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: 2) Accounts receivable erroneously debited to note receivable  Effect on retained earnings -Since…

A: We know that both the accounts receivable and notes receivable are current assets. Retained earnings…

Q: Which of the following accounts are characterized as a "contra" account? (Select ALL tha apply) O…

A: Contra account: Contra effect of the transaction recorded on the opposite side

Q: The normal balance of the account "Sales Allowances" is a A. Debit; it is a contra revenue account…

A: The gross profit is calculated as difference between net sales and cost of goods sold. The net sales…

Q: TRUE OR FALSE? 1. Valuation accounts also known as contra accounts or valuation reserve are neither…

A: Contra accounts are the accounts which are used to offset the balance of asset or liability…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.