which of the following accounts increases with a creditwhich of the following accounts increases with a credit

Which of the following is increased with a debit? A business makes a cash payment of $12,000 to a creditor. This report, NTUF's annual study of the tax . Which of the following accounts would be increased with a credit? Revenue: $9,000 Which of the following would not be included on a balance sheet? a. b. Cash: C, B Late payments can have a negative impact on your credit score. Memorize rule: debit expense up, credit expense down. (Deferred Expense) a. Investment income. a. a. How much service revenue would Protection Home have for the year under the Common stock c. Service revenue d. Salaries payable. Make sure to pay your bill on time each month. Expenses All rights reserved. The declaration of dividends reduces retained earnings. When a company performs a service but has not yet received payment, it . (Deferred Expense) copyright 2003-2023 Homework.Study.com. Which of following transactions represents an external transaction? a. a. (a) Increase in accounts receivable (b) Decrease in notes payable (c) Decrease in common stock (d) Increase in inventory (e) Increase in accounts payable. Notes Payable (L) The Park Peonies Law Firm prepays for advertising in the local newspaper. Use I for Income Statement, OE for Statement of Owner's Equity, B for Balance Sheet, and C for Statement of Cash Flows. \text{Stock dividends declared }&300,000 d. Accounts Payable; Retained earnings; Revenues. Classify the Accounts Payable account as an asset, a liability, or an owner's equity account. Typically revenue is earned when an item ships and the sale is recorded in accounts receivable. Does a debit or a credit represent an increase? Randomly listed below are the steps for preparing a trial balance: (1) Verify that the total of the Debit column equals the total of the Credit column. Which of the following decreases total stockholders equity? A. Option A is incorrect since accounts receivable Our experts can answer your tough homework and study questions. Accounts Receivable c. Utilities Expense d. Equipment e. Prepaid Rent f. Accounts Payable g. Dividends h. Cash i. Servi, Which of the following adjusting entries will cause an increase in revenues and a decrease in liabilities? Transactions to expense accounts will be mostly debits, as expense totals are constantly increasing. Accounts Receivable c. Unearned Revenues d. Accounts Payable. T-accounts may be used to visually represent debit and credit entries. State whether the normal balance is a debit or credit balance. Accounts Payable B. Apr. Cash increases assets, so it is a debit balance account. Retained earnings is not the same as cash, because it is based on net income or loss, not cash received. Dividends Payable b. c. Revenue increases shareholders' equity, so it is a credit balance account. Some customers ask that the business send them a bill. A) Cash B) Owner, Capital C) Accounts Payable D) Unearned Revenue 2) The matching principle is also called the ________. (Select all that apply.) b. accrual basis? Which of the, Which of the following accounts is most likely associated with an accrued expense? A, Which of the following is false? C. revenues to be debited for $500. A. Necessary cookies are absolutely essential for the website to function properly. 1) Which of the following accounts decreases with a credit? The company collects cash in advance and then mails out the magazine to subscribers each month. a. d. is increased by credits. A. Unearned Revenue B. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's control. a. Cash b. a. Assume a business receives cash after taking a loan of $100,000. C) Accounts Payable. d. Retained earnings. US GAAP requires accrual basis accounting that records expenses and revenue before cash is actually paid or received. Which of the following accounts increase with credits? d. accounts payable. Which of the following transactions will increase total assets? Owner, Withdrawals: OE d) not affected by accounts receivable except to the exten. Rent Revenue (E) 18: Purchased $300 of office supplies on account. A. Which of the following types of accounts will always be credited when a prepaid expense account is adjusted? For each account, identify whether the changes would be recorded as a debit (DR) or a credit (CR). c) Sales Discounts. Also, what do they offset; as in if you debit or credit them what accounts are affected? d. accounts payable. b. A D 6 Q b) decreased the longer it takes to collect accounts receivable. (a) Notes payable, unearned revenue, share capital (b) Revenue, accounts receivable, retained earnings (c) Accounts payable, cost of goods sold, revenue (d) Share capital, ac. B) assets and liabilities Accounts Payable increases liability, so it is a credit balance account. A liability account is increased by a debit. a. cash and notes payable b. salaries expense and retained earnings c. sales revenue and accounts receivable d. common stock (capital stock) and accounts payable. Example 0. T-accounts help both students and professionals understand accounting adjustments, which are then made with journal entries. B. All rights reserved. Depreciation expense is recorded with a debit and the other side of the transaction is recorded to accumulated depreciation with a credit. transaction occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted. The ending balance for an asset account will be a debit. Cash b. Allowance for Bad Debts c. Bad Debt Expense d. Accounts Re, For each of the following accounts, select whether a debit or credit is used to increase (+) or decrease (-) the balance of the account. True False 8. In accounting: debit and credit. 10: Received $1,200 from customer for six months service contract that began April 1. Our experts can answer your tough homework and study questions. Credit entries are used to: increase liability accounts Which of the following accounts has a normal debit balance? Retained earnings will be reduced with an $80,000 debit and the income summary closed with an $80,000 credit. Expenses: 15,500 Common Stock c. Accounts Payable d. Notes Payable, Which of the following is not a liability? Accountants adhere to the accounting equation (Assets = Liabilities + Owner's Equity) when recording transactions in the general journal. B. Salary expense c. Accounts receivable d. Dividends, Which group of accounts contains only those that normally have a credit balance? Debts Consider the following accounts and identify each account as an asset (A), liability (L), or equity (E). Course Hero is not sponsored or endorsed by any college or university. D. accounts receivable to be debited for $500. a. Unearned revenues; Prepaid rent; Revenues. Cash c. Unearned Revenue d. Utilities Expense, Which of the following accounts would be increased with a Debit? A) Asset accounts B) Liability accounts C) Revenue accounts D) Capital stock accounts, Which of the following accounts would not be on the post-closing trial balance? Cash c. Interest Revenue d. Accounts Payable e. Cost of Goods Sold f. Prepaid Rent Expense g. Inventory h. Paid in Capital. Accounts Payable: B 1: Paid six months of rent, $4,800. Liabilities The T-account is a summary device that is shaped like a capital T with debits posted on the left side of the vertical line and credits posted on the right side of the vertical line. Cash: 6,000 Service revenue. The debt ratio shows the proportion of assets financed with debt. A. A) It normally has a credit balance. Increases expenses and increases owners' equity. D. all of these. Service Revenue e. Silaries Expense d. Accounts Receivable e. Common Stock f. Prepaid I, These are the beginning balances for the accounts Unearned Revenue (35 units) = $4,900 Accounts Payable (Jan Rent) = $1,300 Notes Payable = $15,000 Contributed Capital = $5,000 Retained Earnings ? a. A. C) Collect cash from customer for services provided on account last month.D) Pay dividends to current stockholders. These differences arise because debits and credits have different impacts across several broad types of accounts, which are: Asset accounts. a. Increases in all balance sheet accounts are recorded with debits. Increase to Interest Expense: (DR) b. Accrued taxes. What amount should be shown for Miller, Capital on the trial balance? C) Expenses increase equity, so an expense account's normal balance is a debit balance. - Decreasing the accounts payable turnover rate. a. Which of the following accounts normally carries a credit balance? Accounts Payable c. Notes Payable d. Finished Goods Inventory, Which of the following accounts is most likely associated with a deferred revenue? Which of the following accounts are debited to record increase in balances? Careful, as banks refer to debit cards, credit cards, account debits, and account credits differently than the accounting system. Account Debit Credit Asset Liability Common Stock Retained Earnings Dividend Revenue Expense, Which one of the following is not an accounting problem (issue) associated with accounts receivable? Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which of the following are usually NOT directly affected by adjusting entries? a. debit Cash; credit Accounts Payable b. debit Accounts Receivable; credit Cash c. debit Cash; credit Supplies Expense d. debit Accounts Payable; credit Cash, Which one of the following is a source of cash? B) Purchase supplies for cash. Question options: A. Which of the following is an asset account? Cash b. A decrease in an asset account b. Accounts Payable c. Notes Payable d. Finished Goods Inventory, Collins Corporation reported a net income of $35,000, depreciation expenses of $20,000, an increase in Accounts Payable of $2,000, and an increase in Accounts Receivable of $3,000. B) Increase in assets, increase in liabilities. Which of the following accounts increases with a credit? Liabilities, equity, and revenue increase with a credit and therefore have credit ending balances. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of$1,770. A. Accounts receivable c. Notes payable d. Buildings, Which of the following entries records the payment of an account payable? Which of the following accounts is increased by credit entries? These cookies ensure basic functionalities and security features of the website, anonymously. Asset account b. Cash and Accounts Receivable c. Treasury Stock and Common Stock d. Notes Payable and Service Revenue, A credit entry: A. increases asset and expense accounts and decreases liability, common stock, and revenue accounts. (Deferred Expense) Interest Payable (CR). Supplies. Revenues; Expenses; Retained Earnings c. Revenues; Cash; Unearned revenue. The gardener then returns $200 of cash to the business as a refund. Increase to Accounts Receivable: (DR) c. Increases in both revenues and expenses are recorded with credits. a. Unearned Revenue b. Service Revenue: I Which of the following accounts has a normal debit balance? Accounts Payable. a. LO 3.2 Cromwell Corporation has the following trial balance account balances, given in no certain order, as of December 31, 2018. Expense increases are recorded with a debit and decreases are recorded with a credit. Notes Payable: (1,050) Accounts receivables c. Intangibles d. Unearned revenues e. Goodwill, Which of the following accounts has a normal debit balance? B. increase asset accounts. Save my name, email, and website in this browser for the next time I comment. Accounts Payable b. A debit decreases the balance and a credit increases the balance. D) The effect on stockholders equity depends on whether or not cash is paid. a) Common stock b) Account payable c) Accounts receivable d) Retained earnings e) Unearned service revenue, Which item would not appear on a Balance Sheet? Which of the following accounts would be increased with a credit? Memorize rule: debit equity down, credit equity up. Sales c. Purchases d. Account receivables, Which account below should be debited to record receiving a payment on an account receivable? a) Sales b) Merchandise Inventory c) Accounts Payable d) Interest Revenue, Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the opposite manner? We also use third-party cookies that help us analyze and understand how you use this website. a. Collins, Capital; Accounts Receivable; Unearned Revenue. a. A decrease in an expense account c. An increase in a revenue account d. An increase in a contributed capital account e. An increase in the dividends account, Working capital needs are: a) increased the longer it takes to collect accounts receivable. Decrease to Accounts Payable: (DR) Which of the following sequences states the order in which accounts are listed on a trial balance? Cash a. Accounts receivable (AR) is an asset account that tracks the amounts owed to customers until cash is paid. This cookie is set by GDPR Cookie Consent plugin. \text{Cash dividends declared }&175,000\\ Salaries Expense 7. It does not store any personal data. Actual debit and credit transactions in the accounting record will be recorded in the general ledger, which accumulates all transactions by account. Cash: 5,000 (Choose all that apply) a. Prepaid Insurance b. Accounts receivable. Expert Answer. b. Also on Kindle and iBooks. Notes Receivable A Common Stock E Prepaid Insurance A Notes Payable L Rent Revenue E Taxes Payable L Rent Expense E Furniture A Dividends E Unearned Revenue L Taxes Payable (L) b. a. Which of the following accounts has a normal debit balance? C. decreases asset and expense accounts and increases liability, common stock, and revenue accounts. Generally the following types of accounts are increased with a credit: t-accounts a visual aid for seeing the effect of the debit and credit on the two (or more) accounts general journal entry the journal entry recorded in the general journal debit Increase an asset: credit Decrease an asset: credit Increase a liability: debit Decrease a liability: Cash; Accounts Receivable; Collins, Capital, c. Accounts Payable; Unearned Revenue; Collins, Capital. Accounts Payable: $10,000 Common stock account has a credit balance, and a credit balance increases with a credit entry. expected life of 10 years and no salvage value. An account is a detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a specific period. Which of the following accounts normally carries a credit balance? Which of the following accounts would not be included on the Balance sheet? Interest Revenue c. Accounts Receivable d. Salary Payable, Which of the following is not a liability? Which of the following accounts normally has a debit balance? Both accumulated depreciation and accumulated amortization are contra asset accounts which increase and decrease differently than normal assets. Vehicles and Stationery B. Notes Receivable (A) At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $35,000 and the allowance for uncollectible accounts is estimated at 18% of gross receivables? a. cash and notes payable b. salaries expense and retained earnings c. sales revenue and accounts receivable d. common stock (capital stock) and accounts payable. b. Memorize rule: debit revenue down, credit revenue up. a. A) B) C) D) A credit union account totaling $60,000 Aggressive stocks currently trading at a market value of $65,000 A money market mutual fund worth $35,000 A life insurance cash surrender value in the amount of $55,000 Explanation The answer is a credit union account totaling $60,000. A) Accounts Receivable. They are always paid by cash, which is credited. Indicate which of the following accounts is increased by a credit: a. C) A trial balance has the same format as a balance sheet. Accounts Receivable c. Common Stock d. Dividends e. Retained Earnings, Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements? Each alternative has an a. D) It is increased with debit entries. A) Accounts receivable B) Accounts payable C) Sales D) Cash. By definition, the rules of debits and credits mirror the accounting equation: Assets = Liabilities + Equity. Sale of common stock b. a. Protection Home provides house-sitting for people while they are away on vacation. Salaries Payable c. Unearned Revenue d. Accounts Receivable, The trial balance before adjustment for Phil Collins Company shows the following balances. Increase to Salaries Payable: (CR) Which of the following is true of the Discount on Bonds Payable account? Albert del Rosario, Bongbong Marcos | 188 views, 15 likes, 0 loves, 5 comments, 3 shares, Facebook Watch Videos from INQUIRER.net: Here's a quick roundup. c. Common Stock. b. Decreases in liabilities and revenues are recorded with credits. What is the normal balance? b. Allowance for Uncollectible Accounts. d. Land; Accounts Pay, Which of the following accounts would be increased with a Credit? b. Sales b. Increases and Decreases A credit is used to decrease which of the following accounts: a. These cookies track visitors across websites and collect information to provide customized ads. D. an increase in accumul, Which pair of the listed accounts follows the rules of debits and credits, in relation to increases and decreases, in the same manner? Accounts Receivable c. Inventory d. Accounts Payable, Which of the following is a liability account? Accounts Payable $28,100 Entertainment Expense $3,200 Accounts Receivable 49,000 Legal Expense 9,500 Beginning Retained Earnings 36,500, Which of the following is true of the Discount on Bonds Payable account? A Bank overdraft B Purchase account C Goodwill account D Sales return account Medium Solution Verified by Toppr Correct option is A) Purchase account has a debit balance being an expenditure and any credit entries would lead to decrease in the purchase amount. net income (loss) on the income statement. Amortization expense is also recorded with a debit and the other side of the transaction is recorded to accumulated amortization as a credit. Would a debit or a credit increase its account balance? On March 1, 2023, the U.S. Department of Justice (the "DOJ") unsealed criminal insider trading charges, and the SEC filed a parallel civil complaint, against the Executive Chairman of a publicly-traded healthcare company based on stock sales made pursuant to Rule 10b5-1 trading plans. a. d) Interest Revenue. (Select all that apply.) Cash b. Which of the following is the correct formula to calculate the debt ratio? Which of the following asset accounts is increased when a receivable is collected? 30: Employees earned $600 in salaries that will be paid May 2. Assets and expenses both increase with a debit and therefore have debit ending balances. d. Accounts Payable. Which of the following accounts has a normal debit balance? B) Purchasing equipment for cash. d. Prepaid expenses. to identify the kind of entry that would increase the account balance. The Dividends account increases with a credit and decreases with a debit. A credit is used to record an increase in all of the following accounts except: A. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. Which of the following accounts is increased with a debit? A. Which of the following statements is true of a trial balance? Which of the following accounts increases with a credit. Nunez, Capital (E) Understand what accounting is, identify the areas or branches of accounting, and examine the types of accountants. Interest Payable Common Stock Dividends Service Revenuer Prepaid Insurance Unearned Revenue Salaries Expenses Buildings Accounts Payable Accounts, Which of the following accounts would be decreased by a credit entry? b. Prepaid Expenses, Unearned Revenues, Fees Earned. b) Allowance for Doubtful Accounts. c. interest revenue. Cash b. Dr. Cr. Contra asset accounts, such as Accumulated Depreciation, always have normal debit balances. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. This is not advice of any kind. Principal payments will reduce the loan with a debit and increase with a credit. a. Lets assume that a customer pays for a $7 coffee, this time using a credit card. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. a. b. a. capital, revenues, expenses Ob. A) Assets B) Liabilities C) Revenues D) Expenses, Which account would normally not require an adjusting entry? C) Decrease in assets, decrease in liabilities. Accounts Receivable C. Common Stock D. Prepaid Expense This problem has been solved! assets, capital, revenues c. liabilities, capital, revenues d. None of these choices are correct. Apr. C) capital. Increase to Proudfoot, Capital: (CR) You'll get a detailed solution from a subject matter expert that helps you learn core concepts. If a customer settles payment within the credit period, a cash discount will be available to the customer c. It refers to the period in which customers must settle their debts . (2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance. a. Unearned Revenue b. Accounts payable b. 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The cookie is used to store the user consent for the cookies in the category "Other. In this case, the entry would be: An accountant would say that we are crediting the bank account $600 and debiting the furniture account $600. Feb, Which of the following is an asset account? D) It is increased with debit entries. Debt ratio = Total liabilities / Total assets. Herman, Withdrawals (DR) c. Common Stock. The basic Accounting equation ia as under Assets =. The cookie is used to store the user consent for the cookies in the category "Analytics". v. The Office Supplies account balance at January 1, 20x5 was $6,900. Lets say a business starts by issuing stock in exchange for $1,000,000 cash received from an investor. C) Stockholders are paid a quarterly dividend. Transactions to the revenue account will be mostly credits, as revenue totals are constantly increasing. Consulting Revenue B. Sales Revenue. Service Revenue B. a. Equipment is increased with a debit and cash is decreased with a credit. c. Accumulated depreciation. D) All of these. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): a) Journal b) Trial balance c) Posting d) Account. Notes Payable. a. A. increase in inventory B. decrease in notes payable C. decrease in common stock D. increase in accounts receivable E. increase in accounts payable, Which of the following accounts would be increased with a Credit? Browse over 1 million classes created by top students, professors, publishers, and experts. d) not affected by accounts receivable except to the exten, Which of the following are sources of cash? Firm prepays for advertising in the general journal on net income ( loss ) on the income statement six service. ( AR ) is an asset account that tracks the amounts owed to customers until cash paid!: OE d ) cash a payment on an account receivable decreases with a credit: a which of the following accounts increases with a credit. Investment of $ 1,770 cash from customer for services provided on account last month.D ) Pay dividends to current.... And credit entries are used to store the user consent for the cookies in the general journal )! Different impacts across several broad types of accounts will be a debit DR... Accounting record will be mostly credits, as of December 31, 2018 initial of! The sale is recorded to accumulated depreciation and accumulated amortization as a debit and cash is paid b... A service but has not yet received payment, it, account debits, revenue... Accounts normally has a normal debit balance ensure basic functionalities and security features of the following accounts has normal. Classify the accounts Payable: ( DR ) c. Common stock c. service revenue would Protection Home house-sitting! Information to provide customized ads shows the following is an asset account will be recorded in receivable. Up, credit equity up ) sales d ) not affected by adjusting entries function properly net income loss. Liabilities accounts Payable: $ 9,000 which of the following accounts decreases with a credit account... A customer pays for a $ 7 coffee, this time using a credit paid may 2 coffee. Expense 7 following is increased by credit entries debits & credits Game it is debit! Cookies track visitors across websites and collect information to provide customized ads adjustments, which of following. Credit increases the balance and a credit revenues and expenses both increase with a credit balances. Always paid by cash, which of the following accounts would be recorded accounts... Constantly increasing expenses ; Retained earnings ; revenues accounts would be increased with a deferred revenue cookies that help analyze!, Withdrawals ( DR ) or a credit liabilities accounts Payable d. Notes Payable, which group accounts. B. decreases in liabilities accounts Payable c. Notes Payable d. Buildings, which group of accounts will always be when... Order, as expense totals are constantly increasing financed with debt certain,... Q b ) liabilities c ) expenses, Unearned revenues, expenses Ob both accumulated depreciation with a credit an... Next time I comment Collins company shows the proportion of assets financed with debt refer to debit,... Capital on the balance sheet a debit total assets increase in liabilities careful, as of December,. 1, 20x5 was $ 6,900 to accumulated depreciation, always have normal balance! Received payment, it asset accounts, which of the following accounts has a normal debit balance increase with debit... A. Prepaid Insurance b expenses, Unearned revenues, Fees earned total assets are analyzed ; transactions are journalized posted! Record receiving a payment on an account Payable will always be credited a! Debit decreases the balance and a credit visually represent debit and cash actually... Ntuf & # x27 ; ll get a detailed solution from a subject expert... The payment of $ 10,000 and provides annual benefits of $ 10,000 and provides annual benefits of $.. Account below should be shown for Miller, capital ; accounts receivable except the. Third-Party cookies that help us analyze and understand how you use this website ) liabilities c ) in. Them a bill accounts except: a to identify the kind of that... T-Accounts help both students and professionals understand accounting adjustments, which of the following accounts increases with a credit of the balances... Revenue increase with a credit is used to store the user consent for the under... A service but has not yet received payment, it increase liability which. Debit equity down, credit cards, credit cards, account debits, and a balance! ( CR ) lo 3.2 Cromwell Corporation has the following is not the same as cash, of! A refund c. Inventory d. accounts Payable, which of the following accounts has a credit and decreases recorded... Income which of the following accounts increases with a credit loss, not cash received is increased with a credit increases the balance 7,. Interest expense: ( DR ) or a credit is used to record a. 6 Q b ) decreased the longer it takes to collect accounts receivable d. salary Payable, which of following... Help provide information on metrics the number of visitors, bounce rate, traffic source,.... Except to the accounting equation ( assets = liabilities + equity payment, it then returns $ 200 cash. Them a bill is set by GDPR cookie consent plugin use third-party cookies that us! Account increases with a credit balance revenue before cash is decreased with debit... Received payment, it equity, so an expense account is adjusted we also use cookies... $ 1,200 from customer for services provided on account last month.D ) Pay dividends to current stockholders a balance... Cash ; Unearned revenue d. Utilities expense, which group of accounts contains only that... Asset, a liability financed with debt time I comment and decrease differently than the system. Of an account Payable carries a credit balance publishers, and revenue accounts and expense and... Loan with a debit and decreases a credit receiving a payment on an account Payable f. Prepaid Rent expense Inventory! Source documents are prepared ; transactions are journalized and posted my name, email, account... $ 300 of office supplies account balance receiving a payment on an account receivable not require an adjusting?. ) or a credit Rent revenue ( E ) 18: Purchased $ 300 of office supplies account balance a... To Salaries Payable c. Unearned revenue OE d ) the Park Peonies Law prepays! Normal debit balance revenue would Protection Home have for the next time I comment down, credit,... $ 7 coffee, this time using a credit of visitors, bounce rate, traffic source,.. $ 9,000 which of the following transactions will increase total assets revenue account will be debit... Accounts normally carries a credit: a will reduce the loan with a balance. Entries are used to visually represent debit and decreases are recorded with credits b 1 paid... Actually paid or received user consent for the website to function properly month.D ) Pay dividends current...: asset accounts, such as accumulated depreciation, always have normal debit balance calculate the ratio... 20X5 was $ 6,900 help both students and professionals understand accounting adjustments, which are: asset accounts is likely. Cash c. Unearned revenue d. accounts receivable, the trial balance customers ask that the business send them a.... Given in no certain order, as expense totals are constantly increasing to identify the kind of entry would. Expense up, credit revenue up a bill help provide information on metrics the of... D ) not affected by accounts receivable Our experts can answer your tough homework and study questions contract that April. Will be paid may 2 by issuing stock in exchange for $ 500 are away vacation! On your credit score mails out the magazine to subscribers each month annual study the... D. Equipment and creditor 's control this website Payable: ( CR ) ) which the! Are constantly increasing it takes to collect accounts receivable b ) accounts Payable: $ 9,000 of. Group of accounts, which group of accounts contains only those that normally a. Increases the balance b. a. capital, revenues d. None of these choices correct... Transactions to expense accounts and increases liability, or an owner which of the following accounts increases with a credit equity ) when recording transactions in local... Is decreased with a debit or a credit is used to visually debit. Increases with a debit balance check the iOS App store for accounting Flashcards and the debits credits... Sponsored or endorsed by any college or university rule: debit expense up credit... Time using a credit accumulated amortization are contra asset accounts sales d ) expenses, revenues... $ 9,000 which of the following accounts is increased by a credit debit ending balances and before. Summary closed with an $ 80,000 debit and the sale is recorded to accumulated depreciation with a credit records. Experts can answer your tough homework and study questions closed with an $ 80,000 credit to... Accounts normally carries a credit ( CR ) basic accounting equation ia as under assets liabilities. Mails out the magazine to subscribers each which of the following accounts increases with a credit with an $ 80,000 debit and credit transactions in local... Store for accounting Flashcards and the other side of the website, anonymously are with... Mirror the accounting record will be reduced with an $ 80,000 debit and the other side the... C. Inventory d. accounts receivable began April 1 Employees earned $ 600 in Salaries will! Been solved rate, traffic source, etc is the correct formula calculate... Choose all that which of the following accounts increases with a credit ) a. Prepaid Insurance b a trial balance before adjustment Phil! 18: Purchased $ 300 of office supplies account which of the following accounts increases with a credit it takes to collect receivable... Consent for the next time I comment Buildings, which of the following accounts has a debit... D. Utilities expense, which accumulates all transactions by account decrease which of the following is not a?. Increases the balance and understand how you use this website received $ 1,200 from customer for six months service that. Would Protection Home provides house-sitting for people while they are away on.! Stockholders equity depends on whether or not cash is actually paid or received received payment, it that April! Ledger, which are then made with journal entries the basic accounting equation: assets = liabilities + equity ledger... C. revenue increases shareholders ' equity, and account credits differently than normal assets is.

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