College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Question
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
A credit to fees earned account will increase the balance of the fees earned account?
a.True
b.False
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_forward1. 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…arrow_forwardWhen cash is paid for rent, Rent Expense is ____. a. increased by a debit b. decreased by a debit c. increased by a credit d. decreased by a creditAnswer the question and explain why did you pick this answerarrow_forward
- Multiple choice: 1. Which if the following us correct concerning a T account? A. The left side is the decrease side for assets B. The right side is the decrease side for liabilities C. The right side is the increase side for revenue D. The left side is the decrease side for expenses 2. Which of the following is not true concerning T accounts? A. The right side of a revenue account is an increase B. The left side of an expense account is an increase C. The left side of an asset account is an increase D. The left side of a liability account is an increasearrow_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_forward8. Which of the following statements about adjusting for accruals is false? It will increase the values of all the accounts recorded. а. b. Neither a receivable nor a payable will be recorded. С. It will either increase or decrease income. d. All of the statements are true.arrow_forward
- When prepaid rent is recognized as an expense, which of the following is true? Select one: a. Prepaid rent decrease, rent expense on the income statement increases and equity decreases b. Cash decreases and equity decreases c. Prepaid rent decrease, rent expense on the balance sheet increases and equity decreases d. Prepaid rent decrease, rent expense on the income statement increases and equity increasesarrow_forwardan increase in revenue is on the credit side hence a decrease in expense is also on credit side true or falsearrow_forwardA credit entry to an account willa. increase assets.b. increase liabilities.c. increase expenses.d. decrease revenues.arrow_forward
- Liabilities and Revenues O Are decreased by debits and increased by credits O Are decreased by both debits and credits O May be decreased by a debit or a credit, depending on the situation Are decreased by credits and increased by debitsarrow_forwardIndicate whether a debit or credit decreases the normal balance of each of the following accounts. Decrease Normal Balance a. Prepaid Rent b. Cash c. Office Supplies d. Notes Receivable e. Accounts Receivable f. Interest Payablearrow_forwardMultiple 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_forward
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