Which of the following statements is correct?A. The left side of a T-account is the credit side.B. Debits decrease asset and expense accounts and increaseC. Liability The left side of a T-account is the debit side.D. Credits increase asset and expense accounts and decrease liabilityE. In certain circumstances the total amount debited need not equalparticular transaction.

Understanding the T-AccountA T-account is a simple representation of an account in the accounting…

Answered: Which of the following statements is…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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Identify the statement below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The total amount debited need not equal the total amount credited for a particular transaction. The left side of a T-account is the debit side.
Excess of Debit side over Credit side is called? Select one: a. All of the above b. Debit Balance c. Liability Accounts d. Credit Balance
What is the impact on the accounting equation when an accounts receivable is collected?A. both sides increaseB. both sides decreaseC. only the Asset side changesD. the total of neither side changes
What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
A credit to fees earned account will increase the balance of the fees earned account? a.True b.False
Assets are increased by debits and liabilities are decreased by credits. TRUE FALSE
1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c. Maturity Value b. Net Realizable Value d. Present Value 2. Loans and receivables are nonderivative financial assets a. With fixed or determinable payments that are not quoted in an active market. b. With fixed or determinable payments that are quoted in an active market. c. Without fixed or determinable payments that are not quoted in an active market. d. Without fixed or determinable payments that quoted in an active market. 3. Subsequent to initial recognition, loans and receivables are measured at a. Cost b. Amortized cost using straight line method c. Amortized cost using effective interest method d. Fair value 4. Trade receivables are classified as current assets when they are reasonably expected to be collected a. Within one year. b. Within the normal operating cycle. c. Within one year or within the normal operating cycle whichever is shorter d. Within one year or within the normal…
Which one of the following statements about revenue is not correct?A. Revenue can result in increases in accounts receivableB. Revenue can result in increases in liabilitiesC. Revenue is earned whenever cash is received from a customerD. Revenue is earned when a service is provided to a customer
9. Allowance for Doubtful Accounts will appear on the balance sheet as a. a contra asset. a. a contra asset. b. a contra liability a liability. d. part of the owner's capital C.
Which one of the following statements is NOT true about account receivables? Select one: a. Account receivables have debit balances. b. Account receivables are current assets. c. Account receivables are can be discounted. d. Account receivables only relate to credit sales.
an increase in revenue is on the credit side hence a decrease in expense is also on credit side true or false
A credit is not the normal balance for which account listed below? Select one: a. Owner’s Drawings account b. Revenue account c. Capital account d. Liability account

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