The purchase of supplies on credit to be use on the main office of the entity, will cause a corresponding what effect on corresponding accounts? a. Increase in assets and decrease in liabilities b. Both increase in assets and liabilities c. Increase in liabilities and decrease in assets d. Both decrease in assets and liabilities

Q: How is accounts-receivable turnover computed and what can the calculation tell the owner-manager?

A: Ratio analysis is significant for the financial position of the corporation, profitability,…

Q: The balance in the profit and loss account is transferred to the:   profit and loss account.…

A: Profit and loss account: It tells the net profit / ( loss ) of the company for the particular…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: The ability of a business to pay its debts is called a. a fiscal year. O b. solvency. O c.…

A: The ability of a business to meet its long-term debts is called solvency. If the solvency is high,…

Q: Which of the following pairs of accounts are impacted the same with debits and credits? Electricity…

A: There are two sides of account in accounting. One is debit side and other is credit side. For all…

Q: Accounts receivable are best described as a. Liabilities of the company that represent the amount…

A:

Q: The collection of cash from customers to which they owe to the entity from its past rendering of…

A: Lets understand the basics. When entity sale the goods on the credit then the buyer known as the…

Q: For the entries below, identify the account to be debited and the account to be credited. Indicate…

A: The question is based on the concept of Financial Accounting.

Q: Which of the following is an example of revenue or expense to be recognized in the current period’s…

A: Income statement forms a part of financial statements and is prepared with a view to show the net…

Q: e of an office building B. Depreciation of vehicles C. Maintenance of machinery D. Sales discount…

A: Income statement records income and expenses. It shows the net income or loss of a company for a…

Q: The purchase of office equipment on credit increases total assets and total liabilities Select one:…

A: Assets are the resources owned by the entity. These may be current or non-current. Liabilities are…

Q: What is the name of the system of accounting for recording transactions, based on recording…

A: Solution: Double entry accounting system is a system of accounting that ensures that every financial…

Q: The matching principle Select one: a. Determines whether the normal balance of an account is a debit…

A: Accounting principles: These are the set of rules and guidelines which every company must follow in…

Q: general ledger accounts are temporary or permanen

A: The above ledger account balances are classified into temporary and permanent are shown below :

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: What is the impact on the accounting equation when an accounts receivable is collected?A. both sides…

A: Accounting equation is one of the important concept used in accounting. Three elements of accounting…

Q: Which of the following is NOT included in the financial assets? A. Cash. B. Investments in…

A: The financial assets include the liquid assets of the business.

Q: Which one of the following accounts is unlikely to ever be seperately disclosed in the income…

A: Financial statement:The financial statement is the statement or the record that is prepared 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.