A journal entry has only two lines: a) Increase in an asset, b) Decrease in Revenue. Multiple Choice a) is a DR and b) is a DR so the entry is NOT valid b) is a CR and b) is a DR so the entry is valid c) is a CR and b) is a CR so the entry is NOT valid d) is a DR and b) is a CR so the entry is valid

A journal entry has only two lines: a) Increase in an asset, b) Decrease in Revenue. Multiple Choice a) is a DR and b) is a DR so the entry is NOT valid b) is a CR and b) is a DR so the entry is valid c) is a CR and b) is a CR so the entry is NOT valid d) is a DR and b) is a CR so the entry is valid

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4MC: A change in the expected service life of an asset arising because additional information has been...

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Concept explainers

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.

Question

A journal entry has only two lines: a) Increase in an asset, b) Decrease in Revenue.

Multiple Choice

a) is a DR and b) is a DR so the entry is NOT valid

b) is a CR and b) is a DR so the entry is valid

c) is a CR and b) is a CR so the entry is NOT valid

d) is a DR and b) is a CR so the entry is valid

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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