As per double entry rules, when will you DEBIT? a. If there is decrease in asset b. If there is decrease in expenses c. If there is increase in asset d. If there is increase in liability
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A:
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- 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 increaseWhich of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees earnedD. Accumulated depreciationB. Create the income statement. Use minus sign to indicate the loss. C. Create the statement of owner’s equity. If an amount box requires a zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign.
- To decrease a contra-asset account, we will ____ it. A. Debit B. CreditThe increase in expenses and decrease in payables should be debited* OTrue Falsewhich of the following transactions and events would result in animprovement in Interest Coverage Ratio?A. receiving cash for unearned sales revenueB. a payment of income tax owing from the previous periodC. an adjustment for accrued interest revenueD. A and B onlyE. A and C onlyF. B and C onlyG. All of the aboveH. None of the above
- 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 changesInstruction: Fill in the blank on the type/nature of the adjustment or the pro-forma entry of the adjustment on the following: 1. The pro-forma adjusting entry to record the interest expense during the reporting period. 2. The expense account used to record the decline in value of assets due to wear and tear. 3. The pro-forma entry to record the estimated accounts that are uncollectible using the allowance method. 4. The expense account used for accounts that could not be collected to bring this account to its net realizable value. 5. The pro-forma entry to record the expense representing the uncollected accounts from customers using the direct method.Capital Loss (MSS Loss) account is an expense account and increased by a credit. a. False O b. True 12
- Multiple choice: 1.Collection of an account receivable would: A.decrease liabilities B. have no effect on owner's equity C. decrease owner’s equity D. increase total assetsA ____ will cause Deferred Revenue to decrease. A. Debit B. CreditWhen liability, capital, and revenue accounts increase, there will be a _____________. a. Neither Debit nor credit b. Credit. c. debit and credit. d. debit.