A liability account is increased by a debit. O True False

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: Accounts payable and accrued liabilities are interchangeable account titles.

A: Accounts payable: accounts payable is the amount that have to be paid to the supplier of goods or…

Q: True (t) or False (f) ____ The matching principle states that debits mus equal credits in each…

A: Matching concept follows the accrual accounting concept of business.

Q: A receivable is an amount due from another party. O True O False

A: In this question, we are required to determine whether the given statement regarding receivables is…

Q: Debit means decrease and credit means increase True or false? Please explain

A: In accounting, journal entries are prepared in the form of debit and credit.

Q: The simplest way to account for an uncollectible account is to use the allowance method. False True

A: The bad debt expense can be recorded in the books using two methods:Direct write off methodAllowance…

Q: 3. The difference between the balance of Accounts Receivable and the balance of Allowance for…

A:

Q: Accounts payable are accounts that you expect will be paid to you. True False

A: Accounts payable are those accounts of suppliers from whom business has made credit purchases of…

Q: A note payable can be used to extend the payment due on an account payable. O True O False

A: Solution: A notes payable is used for financing,  it indicates the money owed by issuer.  By issuing…

Q: The adjusting entry to record a contingent liability requires a debit to a loss (or expense) account…

A: Contingent liability is a potential liability that arises as a result of past transactions but the…

Q: account, we will ____ it. A. Debit  B. Credit

A: A contra asset account is a type of asset account with a balance that can be either negative or…

Q: 3. A liability created for receiving cash for future services to be provided is termec Oservice…

A: The accrual basis accounting records the revenue and expenses as soon as they are incurred…

Q: A credit to fees earned account will increase the balance of the fees earned account? a.True b.False

A: In accounting, the Fees Earned account is a revenue account, and it increases with a credit entry.…

Q: When a liability is paid, which account should be credited? A, Cash B.Accounts payable

A: Cash (money or coins) is legal tender that may be used to exchange products, debts, or services. It…

Q: What is the difference between a nominal account and a real account?

A: There are three types of accounts in financial statements, Real Account Personal Account Nominal…

Q: Contingent liabilities that are reasonably possible are disclosed in the notes. True or False True…

A: Contingent liabilities are potential obligations that may arise from future events, and their…

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: Receiving payments on an account receivable increases both equity and assets. True False

A: Cash is asset and accounts recivable is an asset.

Q: Short answer Which is more relevant to an investor; Accounts Receivable or Accounts Receivable, Net?…

A: Investors are an important class of stakeholders for every company. The contribute to the…

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…