choose the right answerAccording to the rules of debit and credit forbalance sheet accounts?Decrease in asset and liability arerecorded by creditDecrease in liability and owner'sequity are recorded by debitIncrease in assets, liabilities andowner equity recorded by debitIncrease in asset and owner's equityare recorded by debitchoose the right answerJournal is also called a.A day book OHistory book OLedger book OAn entry book O

An asset has a debit balance. A debit entry of asset will increase it's balance while a credit entry…

Answered: Decrease in liability and owner's…

Business

Accounting

Decrease in liability and owner's equity are recorded by debit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Describe the accounting for refund liabilities.

A: Liabilities: The liabilities are the amount of money which a business has to pay to the outside…

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: how to correct a Notification has been received that the outstanding balance on one of the debtors…

A: Introduction: Rectification entry has to be passed when any error has been made in the books of…

Q: ne Income Statem

A: The correct statement is False

Q: when an account is written off using the allowance mehtod , accounts receivable A) is unchanged…

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

Q: Decreases in liability accounts are recorded on the debit side the credit side the right side the…

A: Liabilities are an obligations on the entity. These are to repaid by the entity at a future date.…

Q: Uncarned revenues are received and recorded as liabilities before they are earned. earned and…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

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: Withdrawals by an owner are found on the income statement as an expense True False

A: The income statement indicates the profitability of the company. The income statement contains the…

Q: Allowance for Doubtful Accounts will appear on the balance sheet as a. a contra asset. a. a contra…

A: Allowance for doubtful accounts is prepared for the estimated uncollectible accounts in the future.…

Q: Question: A company had net income of $2,660,000, net sales of $25,000,000, and average total assets…

A: Step 1:Return on total assets is a type of ratio which is a method of analysis of financial…

Q: Indicate the section of an income statement in which each of the following is shown.a. Loss on…

A: a. Loss on inventory write-down: - This loss is related to the cost of goods sold (COGS). When…

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: 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 normal balance for liability accounts?

A: Liability is an obligation that an entity has to pay to its creditors, lenders, suppliers etc.

Q: The account, Discount on Notes Payable, is a a.contra-asset. b.deferred charge. c.liability.…

A: Discount on notes payable - It is the amount payable by the concerned investor is less than the…

Q: What type of entry will decrease the normal balance of the general ledger accounts prepaid…

A: Prepaid expenses are those expenses for which the amount has been paid but expenses has not yet…

Q: The adjustment for accrued expense eliminates the understatement in

A: The correct answer is: (D) Owner’s equity Accrued expenses are expenses that have been incurred,…

Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?

A: The business adjust the profits of the business for the current year considering deferred and…

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Q: Is there a certain order to list the liability accounts in the balance sheet?

A: A liability is an obligation the settlement of which requires outflow of economic resources of the…

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…

Q: Corrections of significant errors of past periods are charged or credited directly to the Retained…

A: Retained earnings comes under the head liabilities in the balance sheet .

Q: Which one of the following is a special type of liability? a. Accrued expenses b. Salaries payable…

A: Accrued expense: These are those expenses which due but not yet paid.This is short term liability…

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…

Q: are classified on the balance sheet as current or Select one: a. long-term. b. accrued. C. unearned.…

A: The balance shows the assets and liabilities of the business.

Q: Which of the following would NOT be shown in the Statement of Profit or Loss? Expired portion of…

A: Income statement shows the income earned and loss incurred by the organization in the financial…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: How to compute the ratio of liabilities to owner's equity

A: Ratio of Liabilities to Owner Equity is Also called Debt To equity ratio. Debt to equity ratio…

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

choose the right answer
According to the rules of debit and credit for
balance sheet accounts?
Decrease in asset and liability are
recorded by credit
Decrease in liability and owner's
equity are recorded by debit
Increase in assets, liabilities and
owner equity recorded by debit
Increase in asset and owner's equity
are recorded by debit
choose the right answer
Journal is also called a.
A day book O
History book O
Ledger book O
An entry book O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Q:How is accidental loss of goods treated in final account in case: a: Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.
9
decrease in accrued expenses are debit or credit??
explain the impact on the balance sheet and income statement, specifying which accounts are affected and whether the balance is over or understated, if adjustments to recognize prepaid insurance as being expired and unearned revenue as being earned, are not recorded.
A liability account is increased by a debit. OTrue O False
Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages payable O d. Accrued expense
Recording bad debt expense under the allowance method will have what effect on the financial statements? Select one: a. Profit is unchanged and total assets decrease b. Profit decreases and total assets is unchanged c. Profit is unchanged and total assets is unchanged d. Profit increases and total assets decrease e. Profit decreases and total assets decrease
69. Claim against assets are represented by A. saved earning B. retained earnings C. maintained earning D. saving account earning
True or false Reclassification of an error will require an adjustment to the retained earnings account.
The adjusting entry of unearned service revenue will decrease the liabilities True False
Describe the major differences between liabilities and owners' equity.
When an advance collection of income has been recorded under the liability method, an adjusting entry is needed to recognize the increase in the balance of the real account. O decrease in the balance of the nominal account. earned portion of the precollection O unearned portion of the precollection.