Ch.2 #4 The duality of effects can be described best as follows 1) When a transaction is recored in the accounting system, and at least 2 effects on the basic accounting equation will result 2) When an exchange takes place betwen two parties both parties must record, one account will account will decrfeaste 3) When a transaction is recorded, one will always increase and one account will always stay the same 4) When a transaction is recorded, one account will always and one account will always decrease

Q: Can I ask normal balance part for accounts payable, which one I should choose? credit or debit? why

A: Liability is the amount that is owed by a company. Liability is divided into two categories that is…

Q: Customer payments received in advance of the product or service being provided is recorded in which…

A: The company can collect advance from the customer before sale of the goods. This method of…

Q: What entry would you use to account for the initial transaction?

A: The accounting process consists of various steps to record, analyze and report the data.

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: Which of the following accounting concepts states that before a transaction is recorded, sufficient…

A: Accounting concepts are fundamental guidelines and principles that help ensure consistency,…

Q: A credit is used to decrease which of the following accounts (more than one may be correct)?…

A: As per rules of debit and credit,  All assets, expenses, withdrawals and dividend accounts will…

Q: Which of the following accounts is increased by the use of debit?

A: The Correct Answer is for accounts is increased by the use of debit:

Q: Match the de

A: Financial informations are the informations which is measured in monetary term and these are the…

Q: DO DEBITS AND CREDITS HAVE TO EQUAL ON A TRIAL BALANCE??

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

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: Which of the following associations would most likely describe the relationship between an internal…

A: Economic Event: Economic event means events which include transferring the ownership of resource…

Q: When one owner or creditor sells to another, the transaction takes place in the which market?…

A: Financial Market is a place where the trading of securities take place. There are major two types of…

Q: Question 7 What is the impact on the accounting equation when an accounts receivable is collected? O…

A: Accounts Receivables comes under the head of current assets in the Balance sheet .

Q: To increase Notes Payable a debit entry is needed. Question 3Select one: True False

A: Notes payable are an obligation for the entity. It is reported on the balance sheet under the head…

Q: The form of asymmetric information that exists before a financial transaction is in place is while…

A: Adverse selection is an asymmetric information problem that occurs prior to a financial transaction…

Q: Generally, we can group transactions into different types based upon the other party to the…

A: Transactions can be categorized into different types based on the parties involved in the…

Q: Is it still necessary to record a transaction if it has no net effect on the accounting equation?…

A: Accounting equation says that total assets in the business must always be equal to total liabilities…

Q: The percentage-of-receivables basis for estimating uncollectible accounts emphasizes O the…

A: Bad debt expense is the anticipated amount of accounts receivable that will not be paid by…

Q: est of details of transactions involves testing the transactions which give rise to the ending…

A: Solution Concept Test of details               Test of details is a method used by auditor to verify…

Q: For part 2, do "written off" and "previously written off accounts collection" fall under debit or…

A: Allowance for doubtful accounts: Allowance for doubtful accounts refers to the allowance prepaid or…

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.