QUESTION 26 Why are revenues increased with a credit? O a. The statement is wrong: revenues are debited. b. Credits mean something good has happened to the firm and revenues are good. O c. They have the same rules of debits and credits as the retained earnings account. O d. They are always received in cash, which is debited. Thus revenues are credited.
QUESTION 26 Why are revenues increased with a credit? O a. The statement is wrong: revenues are debited. b. Credits mean something good has happened to the firm and revenues are good. O c. They have the same rules of debits and credits as the retained earnings account. O d. They are always received in cash, which is debited. Thus revenues are credited.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 26?
Transcribed Image Text:unt for $1,000 and credited a liability account for $500. What can b
Nothing further must be done.
Debit an owners' equity account for $500.
Debit another asset account for $500.
O Credit a different asset account for $500.
QUESTION 26
Why are revenues increased with a credit?
O a. The statement is wrong: revenues are debited.
O b. Credits mean something good has happened to the firm and revenues are good.
O c. They have the same rules of debits and credits as the retained earnings account.
O d. They are always received in cash, which is debited. Thus revenues are credited.
A company records a journal entry that contains a debit to inventory. Which of the following could be a valid entry
a. No further entry is necessary.
QUESTION 27
O b. Credit retained earnings.
Expert Solution
Step 1 Introduction
The accounts are debited and credited based on various rules of accounting.
As per rules, the asset and expense have debit balance, the liabilities, revenue, retained earnings, capital, have credit balance.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education