College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 2, Problem 3QY
To determine
Identify the correct statement.
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Which of the following rules is incorrect ?
The answer is
A. Debits increase the capital account .
B . Credits increase revenue accounts .
C. Credits decrease the drawing account .
D. Debits decrease liability accounts .
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
1. Which of the following statements is FALSE?A. Increase in asset is debited.B. Decrease in asset is creditedC. Increase in liability is debited.D. Decrease in liability is debited.2. Which of the following statements is FALSE?A. Increase in expense is debited.B. Increase in cash is debited.C. Decrease in notes receivable is credited.D. Decrease in accounts payable is credited.3. Which of the following statements is FALSE?A. Increase in capital investment is credited.B. Increase in withdrawal is debited.C. Increase in interest income is debited.D. Decrease in loan payable is debited.4. Which of the following statements is FALSE?A. Increase in unearned revenue is credited.B. Increase in revenue is debited.C. Decrease in supplies is credited.D. Decrease in allowance for doubtful accounts is debited.5. Which of the following statements is FALSE?A. Increase in equipment is debited.B. Increase in mortgage payable is credited.C. Decrease in unearned revenue is debited.D. Increase in…
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - On a sheet of paper, draw the fundamental...Ch. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - A fellow accounting student has difficulty...Ch. 2 - What Would You Do? A new bookkeeper cant find the...
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- 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 changesarrow_forwardWhich of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.arrow_forwardan increase in revenue is on the credit side hence a decrease in expense is also on credit side true or falsearrow_forward
- Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only indirectly as an arithmetical difference. B. Profit increases equity. C. Profit is the excess of total income over total expenses. D. Profit is earned if total income is less than total expenses. 2. An increase to an account is recorded A. in the debit side of that account. B. in the credit side of that account. C. beside the account. D. in the side of that account that represents its normal balance.arrow_forwardWhich of the following statements is incorrect ? Select one: a. When an asset (other than cash) decreases, the Cash account decreases b. When an asset (other than cash) increases, the cash account decreases c. When a liability decreases, the Cash account decreases d. When owner's equity increases, the Cash account increasesarrow_forwardWhen the payment is made to creditors, it would result in which among the following? a. decrease receivables b. increase expenses c. increase equity d. decrease liabilitiesarrow_forward
- What is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…arrow_forwardWhich is the correct answer?arrow_forwardWhat 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 changesarrow_forward
- Which of the following statements are true? 1. Debits represent decreases and Credits represent increases 2. Debits must always equal Credits 3. Assets have normal Debit balances while Liabilities and Stockholders' equity have normal Credit balancesarrow_forwardThe collection of customer’s account is credited to accounts payable. What is the effect of the error in the net income of the current period and in subsequent period? Group of answer choices A. Cannot be determined based on the given information B. Understated C. Overstated D. No effectarrow_forwardWhich of the following increases the reported receivables in the financial statements? offsetting a credit balance in an account receivable a credit balance in an account payable adjustment to eliminate a debit balance in accounts payable a credit balance in an allowance accountarrow_forward
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