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

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: Define each of the following terms:j. Account receivable; days sales outstanding; aging schedule

A: Accounts receivable: Payment due to a company from its sales on credit is called accounts…

Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…

A: Liabilities that are recorded in the balance sheet are of two types they are -  Current liabilities.…

Q: Describe the accounting for actuarial gains and losses

A: The answer:

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: The adjustment for accrued expense eliminates the understatement in Total liabilities O Total…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: What is unearned revenue? Why is it considered a liability? Does unearned revenue impact both the…

A: The adjustment entries are prepared for deferred, accrued revenue and expenses for the period. The…

Q: When a loss contingency is recognized, where is it reported on the income statement?

A: A financial statement that lists the company's earnings and expenses is called an income statement.…

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: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

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: if a trial balance or income state, etc... is post-closing, unadjusted, or adjusted?

A: Trail balance is prepared by the company with an aim to know and verify that the posting entries…

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 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: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: Capital Loss (MSS Loss) account is an expense account and increased by a credit. O a. False Ob. True

A: Capital loss is the loss that is incurred when the value decreases for the capital asset like real…

Q: What is the difference between accrued liabilities an unearned Revenue accounts?

A: Accrued Liabilities :— An expenses of a Business or an Organization incurred  during a specific…

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: Determine if this shall result in recognition of liabilities 9. receipt of goods to be sold for the…

A: Consignment Goods: In the case of consigned goods, the party in actual possession of them do not own…

Q: Which account is least likely to appear in an adjustingjournal entry?a. Cashb. Interest Receivablec.…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year,…

Q: What is the net impact to total assets when an account receivable is written ofif? decrease in total…

A: JOurnal entry for written off of Accounts receivable: DATE ACCOUNTS DEBIT CREDIT   Allowance…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: When an account is written off using the allowance method, account receivable is ?

A: The allowance method usually sets aside a reserve for bad debts that are to be incurred in the…

Q: Is a transaction that has the effect of lowering an asset recorded as a debit or as a credit? Is the…

A: A transaction is a business engagement that has an economic effect on a financial statement and is…

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Normal balance: Normal balance of an account refers to the heavier side of the account vis-à-vis the…

Q: Under the allowance method for uncollectible receivables, the entry to record uncollectible-account…

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

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 is accidental loss of goods treated in final account in case: a: Goods had not been insured or…

A: Accidental loss:   It is a loss incurred by a sudden or unexpected incident to the company. Accident…

Q: Reversing entries maybe used in unearned income when the original collection is recorded as a.…

A: Answer When unearned revenues are recorded as liabilities then an unearned revenue account is…

Q: he Revaluation Reserve Account should be accounted for as part of a. Assets b. Liability c.…

A: Equity - Equity is a that portion of company's balance sheet that includes amount invested by the…

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.