Accurate Explanation A transaction recording income earned:A. leaves total assets unchangedB. increases assets and decreases equityC. increases assets and equityD. increase assets and liabilities

Explanation of Assets: Assets are resources owned by a business that have economic value and are…

Answered: A transaction recording income earned:…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 3MC: Identify the correct components of the income statement. A. revenues, losses, expenses, and gains B....

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Similar questions

Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
Debit: decrease both assets and liabilities. a. increase assets and decrease b. liabilities. decrease assets and increase Oc. liabilities. С. increase both assets and liabilities. Od.
Identify the asset from the following list of accounts:a. Notes Payableb. Common Stockc. Retained Earningsd. Inventory
B4.
Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’ equityd. Asset
How are gain contigencies reported in the financial statements? a. a contingent account receivable b. an accrued revenue c. a deferred revenue d. not at all
The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
Accounting type Question: The basis of income Measurement is A. Matching concept B. Accounting Period concept C. Money Measurement concept D. Cost concept
The financial performance og an entity is calculated by
According to the acquired assets should be recorded at the amount actually paid rather than at the estimated market value. O A. monetary unit assumption O B. going concern assumption O C. cost principle D. economic entity concept
Analyze the following transactions and identify its effects on assets, liabilities, and capital. Write ? for increase, ? for decrease, NE for No effect and I/D if the effect is only in one major accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
The account Gain (Loss) on Sale of Investments should be included on the: A. balance sheet as an adjustment to stockholders' equity. B. statement of retained earnings. C. income statement as other revenue (expense). D. balance sheet as an adjustment to the asset account.

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A transaction recording income earned: A. leaves total assets unchanged B. increases assets and decreases equity C. increases assets and equity D. increase assets and liabilities