Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 3, Problem 30MC
Which of the following accounts does not increase with a debit entry?
A.
B. Buildings
C. Prepaid Rent
D. Electricity Expense
Expert Solution & Answer

Trending nowThis is a popular solution!

Students have asked these similar questions
Val Sims is a self-employed CPA and is the sole practitioner in her tax practice. She has had several situations arise this year involving client representation, client records, and client fee arrangements. Val is concerned that her actions may be in violation of the Circular 230 regulations governing practice before the Internal Revenue Service (IRS). Indicate whether Val is in violation of the regulations for each of the actions described.
1. Andrews, a current business client, is being audited by the IRS. The IRS auditor in charge of the audit has requested that Val provide the depreciation schedules that Val prepared for Andrews's sole proprietorship business. Andrews has refused to provide his copies of the depreciation schedules and has instructed Val not to provide the documents to the auditor. The depreciation schedules are not privileged information. Val provided the requested information to the IRS agent against her client's instructions.
2. In the IRS audit of Val's client…
Val Sims is a self-employed CPA and is the sole practitioner in her tax practice. She has had several situations arise this year involving client representation, client records, and client fee arrangements. Val is concerned that her actions may be in violation of the Circular 230 regulations governing practice before the Internal Revenue Service (IRS). Indicate whether Val is in violation of the regulations for each of the actions described.
1. Val has prepared tax returns and provided tax advice for Charles and Diane, a married couple, for several years. This year, Diane informed her that she and Charles are getting a divorce and asked Val for specific advice as to how she should negotiate an advantageous marital property settlement. Because the divorce was still pending at the end of the year, she also asked Val to prepare their joint income tax return for the year. Val informed Diane that there was a potential conflict of interest and Diane gave informed consent in writing. Val did…
Applying the Accounting Equation and Computing Financing ProportionsUse the accounting equation to compute the missing financial amounts (a), (b), and (c).
$ millions
Assets
=
Liabilities
+
Equity
Hewlett-Packard
$106,882
=
$78,731
+
$ (a)
General Mills
$21,712
=
$ (b)
+
$5,307
Target
$ (c)
=
$27,305
+
$12,957
a. Equity: $Answer 1
b. Liabilities: $Answer 2
c. Assets: $Answer 3
Determine the percentage of owner-financing for each company.
Company
Numerator
Denominator
% Owner-financed
Hewlett-Packard
Answer 4
Answer 5
General Mills
Answer 6
Answer 7
Target
Answer 8
Answer 9
Which of these companies is the most owner-financed? Answer 10Which of these companies is the most nonowner-financed? Answer 11
Chapter 3 Solutions
Principles of Accounting Volume 1
Ch. 3 - That a business may only report activities on...Ch. 3 - That companies can present useful information in...Ch. 3 - The system of using a monetary unit, such as the...Ch. 3 - Which of the following terms is used when assuming...Ch. 3 - The independent, nonprofit organization that sets...Ch. 3 - The standards, procedures, and principles...Ch. 3 - These are used by the FASB, and it is a set of...Ch. 3 - This is the independent federal agency protecting...Ch. 3 - Which of the following is the principle that a...Ch. 3 - Which of the following is the principle that a...
Ch. 3 - Also known as the historical cost principle,...Ch. 3 - Which of the following principles matches expenses...Ch. 3 - Which of the following does not accurately...Ch. 3 - Which of these statements is false? A. B. C. D.Ch. 3 - Which of these accounts is an asset? A. Common...Ch. 3 - Which of these accounts is a liability? A....Ch. 3 - If equity equals $100,000, which of the following...Ch. 3 - Which process of the accounting cycle often...Ch. 3 - The step-by-step process to record business...Ch. 3 - One operating cycle of a business, which could be...Ch. 3 - ________ takes all transactions from the journal...Ch. 3 - Which of these events will not be recognized? A. A...Ch. 3 - A company purchased a building twenty years ago...Ch. 3 - What is the impact on the accounting equation when...Ch. 3 - What is the impact on the accounting equation when...Ch. 3 - What is the impact on the accounting equation when...Ch. 3 - What is the impact on the accounting equation when...Ch. 3 - What is the impact on the accounting equation when...Ch. 3 - Which of the following accounts is increased by a...Ch. 3 - Which of the following accounts does not increase...Ch. 3 - Which of the following pairs increase with credit...Ch. 3 - Which of the following pairs of accounts are...Ch. 3 - Which of the following accounts will normally have...Ch. 3 - What type of account is prepaid insurance? A....Ch. 3 - Unearned service revenue occurs when which of the...Ch. 3 - Which set of accounts has the same type of normal...Ch. 3 - Which of these transactions requires a debit entry...Ch. 3 - Which of these transactions requires a credit...Ch. 3 - Which of these accounts commonly requires both...Ch. 3 - Which of the following accounting records is the...Ch. 3 - Which of the following financial statements should...Ch. 3 - Explain what conservatism means, and give an...Ch. 3 - State the accounting equation, and explain what...Ch. 3 - How do revenues and expenses affect the accounting...Ch. 3 - Does every transaction affect both sides of the...Ch. 3 - Which is the book of original entry?Ch. 3 - What is the effect on the accounting equation when...Ch. 3 - What is the effect on the accounting equation when...Ch. 3 - Is it still necessary to record a transaction if...Ch. 3 - Why does the combined total of the companys...Ch. 3 - What do the terms debit and credit mean?Ch. 3 - Will an accounts receivable balance increase with...Ch. 3 - What types of accounts will increase with a...Ch. 3 - What is a journal?Ch. 3 - Why is a journal referred to as the book of...Ch. 3 - What does the term recognize mean?Ch. 3 - What are the rules you should follow when...Ch. 3 - What is the general ledger?Ch. 3 - Explain the steps in posting.Ch. 3 - What is a T-account? When would we use T-accounts?Ch. 3 - Explain normal balances. Give three examples of...Ch. 3 - What is a prepaid account? What type of account is...Ch. 3 - What is an unearned account? What type of account...Ch. 3 - Explain what a T-account is and what purpose it...Ch. 3 - Can a credit entry be described as a generally...Ch. 3 - What types of accounts are increased with a debit?Ch. 3 - What types of accounts are increased with a...Ch. 3 - What does an accounts normal balance indicate?Ch. 3 - Does the order in which financial statements are...Ch. 3 - Answer the following questions about the trial...Ch. 3 - Match the correct term with its definition. A....Ch. 3 - Consider the following accounts, and determine if...Ch. 3 - Provide the missing amounts of the accounting...Ch. 3 - Identify the financial statement on which each of...Ch. 3 - Cromwell Company has the following trial balance...Ch. 3 - From the following list, identify which items are...Ch. 3 - Indicate what impact the following transactions...Ch. 3 - For the following accounts please indicate whether...Ch. 3 - Indicate what impact the following transactions...Ch. 3 - Identify the normal balance for each of the...Ch. 3 - Identify whether each of the following...Ch. 3 - Identify whether each of the following...Ch. 3 - Identify whether ongoing transactions posted to...Ch. 3 - Determine whether the balance in each of the...Ch. 3 - Journalize for Harper and Co. each of the...Ch. 3 - Discuss how each of the following transactions for...Ch. 3 - For each item that follows, indicate whether a...Ch. 3 - Indicate whether each account that follows has a...Ch. 3 - A business has the following transactions: The...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Post the following February transactions to...Ch. 3 - Post the following November transactions to...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Match the correct term with its definition. A....Ch. 3 - Consider the following accounts and determine if...Ch. 3 - Provide the missing amounts of the accounting...Ch. 3 - From the following list, identify which items are...Ch. 3 - Indicate what impact the following transactions...Ch. 3 - For the following accounts indicate whether the...Ch. 3 - Which two accounts are affected by each of the...Ch. 3 - Identify the normal balance for each of the...Ch. 3 - Identify whether each of the following...Ch. 3 - Identify whether each of the following...Ch. 3 - Identify whether ongoing transactions posted to...Ch. 3 - West End Inc., an auto mechanic shop, has the...Ch. 3 - State whether the balance in each of the following...Ch. 3 - Journalize each of the following transactions or...Ch. 3 - Discuss how each of the following transactions...Ch. 3 - For each of the following items, indicate whether...Ch. 3 - Indicate whether each of the following accounts...Ch. 3 - Krespy Corp. has a cash balance of $7,500 before...Ch. 3 - A business has the following transactions: A. The...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Post the following August transactions to...Ch. 3 - Post the following July transactions to T-accounts...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - For each of the following situations write the...Ch. 3 - Assuming the following account balances, what is...Ch. 3 - Assuming the following account balance changes for...Ch. 3 - Assuming the following account balance changes for...Ch. 3 - Identify the financial statement on which each of...Ch. 3 - Indicate what impact ( for increase; for decrease)...Ch. 3 - Indicate how changes in the following types of...Ch. 3 - Identify the normal balance (Dr for Debit; Cr for...Ch. 3 - Indicate the net effect ( for increase; for...Ch. 3 - Identify whether the following transactions would...Ch. 3 - The following information is provided for the...Ch. 3 - Sewn for You had the following transactions in its...Ch. 3 - George Hoskin started his own business, Hoskin...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Post the following July transactions to T-accounts...Ch. 3 - Post the following November transactions to...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Assuming the following account balances, what is...Ch. 3 - Assuming the following account balance changes for...Ch. 3 - Assuming the following account balance changes for...Ch. 3 - Identify the financial statement on which each of...Ch. 3 - Indicate what impact ( for increase; for decrease)...Ch. 3 - Indicate how changes in these types of accounts...Ch. 3 - Identify the normal balance (Dr for Debit; Cr for...Ch. 3 - Indicate the net effect ( for increase; for...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Prepare journal entries to record the following...Ch. 3 - Post the following November transactions to...Ch. 3 - Post the following July transactions to T-accounts...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Prepare an unadjusted trial balance, in correct...Ch. 3 - Is it possible to be too conservative? Explain...Ch. 3 - Why is it important to learn all of this...Ch. 3 - Assume that you are the controller of a business...Ch. 3 - Is the order in which we place information in the...Ch. 3 - Analyze Trusty Companys trial balance and the...
Additional Business Textbook Solutions
Find more solutions based on key concepts
(NPV calculation) Calculate the NPV given the following free cash flows if the appropriate required rate of ret...
Foundations Of Finance
4. JC Manufacturing purchase d inventory for $ 5,300 and al so paid a $260 freight bill. JC Manufacturing retur...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horizontal analysis(Learning Objective 2)15-20 min. What were the dollar and percentage changes in Fesslers Fin...
Financial Accounting, Student Value Edition (5th Edition)
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (12th Edition)
To what does the lifetime value of the customer refer, and how is it calculated?
MARKETING:REAL PEOPLE,REAL CHOICES
Sykes Corporations comparative balance sheets at December 31, Year 2 and Year 1, reported accumulated depreciat...
Intermediate Accounting (2nd Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Reading and Interpreting Audit OpinionsRivian Automotive financial statements include the following audit report from KPMG LLP. -----------------------------------------------------------------------------------------------------------------------------------------------Report of Independent Registered Public Accounting FirmTo the Stockholders and Board of DirectorsRivian Automotive, Inc.:Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Rivian Automotive, Inc. and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive loss, changes in contingently redeemable convertible preferred stock and stockholders' (deficit) equity, and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in…arrow_forwardIn a recent year, Adobe Inc. reports net income of $4,756 million. Its stockholders’ equity is $14,051 million and $14,797 million at the start and end of the fiscal year, respectively. a. Compute its return on equity (ROE) for the year. Round answers to the nearest whole dollar amount. Numerator Denominator Result Return on equity Answer 1 Answer 2 b. Adobe repurchased $6,550 million of its common stock during the year. Did this repurchase increase or decrease ROE? NOTE: Assume there was no change in net income related to the stock repurchase. c. If Adobe had not repurchased common stock during the year, what would ROE have been? Note: Enter answer as a percentage rounded to the nearest one decimal place (ex: 24.8%).arrow_forwardComputing Return on Assets and Applying the Accounting Equation Nordstrom Inc. reports net income of $564 million for a recent fiscal year. At the beginning of that fiscal year, Nordstrom had $8,115 million in total assets. By fiscal year end, total assets had decreased to $7,886 million. What is Nordstrom’s ROA? Note: Enter answer as a percentage rounded to the nearest 2 decimal places (ex: 24.58%). ROA Answerarrow_forward
- Computing and Interpreting Financial Statement RatiosFollowing are selected ratios of Norfolk Southern. Return on Assets (ROA) Component FY4 FY3 Profitability (Net income/Sales) 25.7% 27.0% Productivity (Sales/Average assets) 0.329 0.291 a. Was the company profitable in FY4? Answer 1b. In which year was the company more profitable? Answer 2c. Is the change in productivity a positive or negative development? Answer 3d. Compute the company’s ROA for both years. Note: Enter your answer as a percentage rounded to one decimal place (Ex: 29.4%).FY4 Answer 4%FY3 Answer 5%e. From the information, which of the following best explains the change in ROA during FY4?arrow_forwardExpand upon it and add to itarrow_forwardDefine these terms: A) Information Asymmetry. B) Material misstatement in the audited financial statements. C) The term "Professional Skepticism." D) Contribution margin ratio. E) Gross Margin, also known as Gross Profit Margin.arrow_forward
- No Ai Which of the following errors will cause the trial balance to not balance?A. Omission of a transactionB. Entry posted twiceC. Transposing digits in one sideD. Debiting one account and crediting anotherarrow_forwardDon't use ChatGPT!! Which of the following errors will cause the trial balance to not balance?A. Omission of a transactionB. Entry posted twiceC. Transposing digits in one sideD. Debiting one account and crediting anotherarrow_forwardWhich of the following is a temporary account?A. Retained EarningsB. Service RevenueC. Accounts PayableD. Inventoryarrow_forward
- Which of the following errors will cause the trial balance to not balance?A. Omission of a transactionB. Entry posted twiceC. Transposing digits in one sideD. Debiting one account and crediting anotherarrow_forwardMime Delivery Service is owned and operated by Pamela Kolp. The following selected transactionswere completed by Mime Delivery Service during October:1. Received cash from the owner as an additional investment, $7,500.2. Paid creditors on account, $815.3. Billed customers for delivery services on account, $3,250.4. Received cash from customers on account, $1,150.5. Paid cash to the owner for personal use, $500.Required:Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities,Owner’s Equity, Drawing, Revenue, and Expense) by listing the numbers identifying the transactions,(1) to (5). Also, indicate the specific item within the accounting equation element that is affected, i.e.(1) Asset (Cash) increases by $; Owner’s Equity (Pamela Kolp, Capital) increases by $.arrow_forwardWhen a company incurs an expense but does not yet pay it, what is the entry?A. Debit Expense, Credit CashB. Debit Liability, Credit ExpenseC. Debit Expense, Credit LiabilityD. No entry needed helparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License