What do the terms 'debit' and 'credit' mean from an accounting perspective?  What are the two primary rules of debits and credits?  How do these impact the various types of accounts (assets, liabilities, expenses, revenues, distributions to owners, and equity)?  How do they help ensure that an illogical journal entry cannot be made?  Provide at least one example of an illogical entry. Why would this be illogica

Q: Is there any relevance for double entry in accounting. Why would it be impossible to insist single…

A: Double-Entry Accounting:It's like a detailed and balanced record-keeping system.Every financial…

Q: Are all expenditures a debit account? Are they debit accounts, despite the fact that Owner's Equity…

A: Here is the Answer

Q: What are the different types of errors that are found in the books of accounts?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: How does the integration of blockchain technology impact the fundamental principles of double-entry…

A: The "Conceptual Framework for Financial Reporting" serves as a fundamental guide for accounting…

Q: What are the impacts on your financial statement if you account the transactions not accurately

A: Financial Reporting refers to the recording of the financial transactions of a company for a desired…

Q: A credit of a debt account can in the case of the counter-accounting (debiting) involve a booking of…

A: Debt refers to the amount that is due to be paid to the outsiders. The debt can be recorded as…

Q: what is real account ?

A: There are three types of accounts that are used in accounting: 1. Personal 2. Real 3. Nominal Real…

Q: What is the purpose of the accounting?

A: Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions…

Q: y available information.Accounting information is not useful unless it confirms previously available…

A: Accounting information is general purpose and should be designed to serve the information needs of…

Q: Why are the income statement accounts closed but thebalance sheet accounts are not?

A: Income Statement accounts are closed but the Balance Sheet are not closed.

Q: What are some tips for knowing when accounts are debited and when they are credited? I know that…

A: Normal balance: Normal balance refers to the excess of the amount on one side, over the amount on…

Q: TRUE OR FALSE? Allowance for doubtful accounts will never have a debit balance.

A: Allowance for doubtful accounts is maintained for making provision for those where the debtors are…

Q: What is accrual accounting and why is it the preferred method for most organisations?

A: The following are two methods used for financial reporting as follows under:-.Cash accountingAccrual…

Q: ndicate if it is an accounting mistake and provide an explanation for why it is or is not.

A: The Answer

Q: Which one of the following statements is NOT true about account receivables? Select one: a. Account…

A: Accounts receivable: if sale is made on cash the supplier immediately collects the cash and no…

Q: How should we account for the fact that not every account receivable is likely to be collected?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: what are accounting principles?

A: Accounting principles are a set of rules and regulations that should be followed when reporting the…

Q: What makes a nominal account different from a real one?

A: SOLUTION ACCOUNTING CYCLE IS A COLLECTIVE PROCESS OF IDENTIFYING , ANALYZING AND RECORDING THE…

Q: Accrual Basis of Accounting versus Cash Basis of Accounting On December 31, Hermani Patterson…

A: Accrual basis of accounting provides that Revenue as well as Expenses will be recorded as and when…

Q: Why are closing entries and reversing entries important in accounting?

A: Introduction:- A reversing entry are made at the beginning of an accounting period to reverse of a…

Q: regulation around accounting and financial statement preparation

A: An accounting standard is actually a set of principles, procedures, and standards that determine the…

Q: Why is a service expense a good account for recording a fictitious expense?

A: Fictitious Expense:  Fictitious expense has no tangible existence or any value, but it is created in…

Q: Which of the following is not a major challenge facing the accounting profession?   a.…

A: The accounting profession involves a wide range of activities related to financial reporting,…

Q: A T-account (ledger account) does not have the word asset, liability or equity. How can you tell…

A: The accounts are maintained by the business in order to keep proper record of the transactions that…

Q: What does it mean to recognize an accountingtransaction?

A: The accounting transactions that directly or indirectly alters the financial aspect of the…

Q: adjusting some transactions before Final Accounts are prepared?

A: The final accounts are prepared after making adjustments. Adjustments are very much required for 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: ul Accou

A: For accurate financial reporting and determining the true value of accounts receivable, bad debts…

Q: Which of the following sentences is Not correct:    Monetary unit assumption states that only…

A: Book Keeping: Financial transactions are recorded through book keeping.

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: A contra account will not be listed immediately after its related account. O be potentially…

A: A contra account is the type of account that has balance that is opposite of the normal balance for…

Q: record all transactions in accounting

A: Transactions are recorded to get a true picture of the state of affairs of a business during a…

Q: allowance for doubtful accounts in accounting for receivables?

A: As per prudence Principle :- always anticipate future losses but never anticipate future profit.

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is