What effect does the adjusting entry recognizing accrued wages expense at the end of the accounting period have on the accounting equation?     Assets decrease and shareholders’ equity decreases.     Liabilities increase and shareholders’ equity decreases.     Assets decrease and liabilities decrease.     Liabilities decrease and shareholders’ equity decreases.

Q: Equity

A: We know that  Assets = Liabilities + ShareHolders equity  That is assets of a business are made up…

Q: None

A: Step 1: Meaning of Accounting EquationAccounting equation is a mathematical expression which shows…

Q: Which account would be increased with a debit?   Multiple Choice   Supplies   Accounts Payable…

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Q: Certain changes that cause adjustments in the current and future periods: a. Changes in Financial…

A: Definition:

Q: The increase in expenses and decrease in payables should be debited* O True O False

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Q: Interest Expense on Notes Payable is recorded with an increase to Interest Expense, which decreases…

A: The interest expense on notes payable would be recorded with an increase to interest expense, which…

Q: The current ratio of a company is its current assets divided by its current liabilities. Question 7…

A: CURRENT RATIOCurrent Ratio is the ratio between Current Assets & Current Liabilities. Current…

Q: computing the cost of debt, a tax adjustment is required t arrive at after-tax cost of debt. Why is…

A: Cost of Equity: It is the rate of return the company pays to the investor for investing in the…

Q: n aging analysis of accounts receivable is a study of the maturity of accounts receivable, such that…

A: Aging analysis is very important in financial health of company and credit policy of the company.

Q: 1. 00 8. 4) What is the impact of establishing the allowance to the horizontal equation? (in each…

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Q: Liabilities and Revenues O Are decreased by debits and increased by credits Are decreased by both…

A: The different accounts in the business have debit or credit balance. According to the rules of…

Q: 19.  Which of the following statements relating to earnings per share is not true? __________ It is…

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Q: The adjusting entry of orepaid expense will decrease the equity True False

A: Prepaid Expenses: These are the current assets that need to be paid within less than 12 months.…

Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…

A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…

Q: on which date is retained earnings decreased and liabilities increased?

A: Dividend will have a declaration date, record date and payment date. On declaration date dividend is…

Q: revaluation or restatement of assets and liabilitie:

A: Equity is calculated by deducting total liabilities from total assets. It can be more clearly…

Q: m retained earningsi or the fact that

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Q: Why does debt decrease a company's Shareholders Equity in terms of journal entries? Is it because of…

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Q: Debits always decrease which accounts? O Liabilities, Revenue and Common Stock Assets, Liabilities…

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Q: Which statement below is true? Retained earnings unappropriated is shown as part of reserves in the…

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Q: What is the effect of writing off of an uncollectible account to the working capital of a company?…

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Q: Performing services on account: Select one: o 0 A. decreases revenues and decreases stockholders'…

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Q: entry to record sales on account is not posted: O Stockholders' equity will be overstated.. O Assets…

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Q: QUESTION 13 The accounting equation may be expressed as O Assets = Equities – Liabilities O Assets +…

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Q: The following transactions affect the Statement of Changes in Equity except:

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Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

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Q: Which of the following is an incorrect statement?     Income - Expenses = Operating Incom…

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Q: Question 7 What is the impact on the accounting equation when an accounts receivable is collected? O…

A: Accounts Receivables comes under the head of current assets in the Balance sheet .

Q: loss on trading securities? a. Stockholders' equity decreases, and liabilitie

A: The correct statement is : a) Stockholder's equity decrease , and liabilities increase .

Q: Owner's Equity of a company would not include Note payable. Rent Expenses. Retained Earnings…

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Q: According to the IASB Framework for the preparation and presentation of financial statements, which…

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Q: Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks…

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Q: Under clean-surplus accounting, a statement of common shareholders' equity has no income other than…

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Q: Which of the following rules is incorrect? Credits decrease the dividends account. Debits increase…

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Q: An accrual of wages expense would have what effect on the balance sheet? Select one: O O O O A.…

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Q: Credits always increase which accounts? Assets, Liabilities and Common Stock Liabilities, Revenues…

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Q: Explain why stockholders’ equity is increased by revenuesand decreased by expenses.

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Q: Which of the following debit and credit rules is correct?a. Increases in assets and liabilities are…

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