D. Accounts Payable. How much service revenue would Protection Home have for the year under the Save my name, email, and website in this browser for the next time I comment. Cash c. Interest Revenue d. Accounts Payable e. Cost of Goods Sold f. Prepaid Rent Expense g. Inventory h. Paid in Capital. Retained Earnings and Service Revenue are part of equity. These expenses are recorded to show the decline in value of certain assets over time and do not affect cash. Which of the following accounts increase by means of a debit entry in the ledger? Understand these critical pieces of notation by exploring the definitions and purposes of debits and credits and how they help form the basics of double-entry accounting. Fees Earned b. B) The chart of accounts. Service Revenue (CR) Please consult an Attorney or Certified Public Accountant. Accounts Payable c. Work-in-Process Inventory d. Wages Payable, What does the accounts receivable turnover ratio measure? This is visually represented as a big green T in Accounting Game - Debits and Credits, available for iPhone and iPad. b. This is the opposite debit and credit rule order used for assets. Some customers ask that the business send them a bill. a. cash basis? b. Prepaid Expenses, Unearned Revenues, Fees Earned. Under the cash basis, for the two months ending February 28, the law firm should record advertising expense of $3,000 b. d. drawing account. Rent Revenue (E) d) not affected by accounts receivable except to the exten. 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? Accounts payable b. Increases, The inventory account is increased by A) Credits B) Debits C) Either credits or debits D) Neither credits nor debits, Which of the following accounts has a normal debit balance? Cash; Accounts Receivable; Collins, Capital, c. Accounts Payable; Unearned Revenue; Collins, Capital. C. They have the same rules of debits and credits as the re, Which account would likely be included in a deferral adjusting entry? Equity accounts. d) both an expense account and an asset account. The loan is payable on February 1, 20x6, for the face amount of $200,000 plus interest for one year. Within the chart of accounts the balance sheet accounts are listed first, followed by the income statement accounts. D. Salaries expense. C) capital. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Accounting Play content is for education and information only. State whether the normal balance is a debit or credit balance. Memorize rule: Assets = Liabilities + Equity, Memorize rule: the sum of all assets will equal the sum of liabilities + equity, Each account generally will have an ending debit balance or credit balance, depending on the account type. a. Would a debit or a credit increase its account balance? Study with Quizlet and memorize flashcards containing terms like The account title used for recording the payment of rent in advance for an office building is ________., which of the following is an asset account, a customers promise to pay in the future for services or goods sold is called and more. Net income for the year was $15,000. Which of the following accounts is increased by a credit entry? Sales b. d. Accounts Payable; Retained earnings; Revenues. Accounts payable (AP) tracks all of the bills before they are paid for in cash. Example 0. 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? Expenses: 1,200 Accounts Payable c. Notes Payable d. Finished Goods Inventory, Which of the following accounts is most likely associated with a deferred revenue? Use I for Income Statement, OE for Statement of Owner's Equity, B for Balance Sheet, and C for Statement of Cash Flows. A select list of transactions for Anuradha's Goals follows: b. Furniture: 10,000 Cash b. Learn about the fields of accounting. a) Accounts Receivable, Revenue, Cash b) Cash, Accounts Payable, Building c) Prepaid Expenses, Building, Patents d) Unearned Revenues, Prepaid Expenses, Cash, Which account below should be debited to record the purchase of merchandise for resale using cash? In the accounting record, the checking account is increased with a debit and the savings account is decreased with a credit. (Deferred Expense) Increase to Interest Revenue: (CR). The revenue recognition principle requires companies to record revenue when (or as) the entity satisfies each performance obligation. Apr. But opting out of some of these cookies may affect your browsing experience. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. d. Accounts Receivable. Which of the following statements is true of expenses? 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. T-accounts may be used to visually represent debit and credit entries. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. EndofYearReceiptsDisbursements0$0$1,0001$600$3002$600$3003$700$3004$700$3005$700$300. a. Unearned revenues; Prepaid rent; Revenues. 10: Received $1,200 from customer for six months service contract that began April 1. Cash b. Common stock c. Service revenue d. Salaries payable. a. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet. Principal payments will reduce the loan with a debit and increase with a credit. When a business collects cash, the Cash account is debited. - Increasing the. a. debits; debits b. credits; credits c. debits; credits d. credits; debits. new product are shown below. a. Collins, Capital; Accounts Receivable; Unearned Revenue, b. Which of the following is considered a fiscal period? D) Supplies purchased last month are used up. C) assets and expenses The gardener then returns $200 of cash to the business as a refund. Revenue increases are recorded with a credit and decreases are recorded with a debit. c. Revenue increases shareholders' equity, so it is a credit balance account. Which of the, Which of the following groups of accounts are increased with credits? Common Stock and Rent Expense b. c. Cash is debited for $20 and A, On December 31, Collins Co. had the following list of accounts. a. b. B) Stockholders equity decreases. Assume a business has an $80,000 loss for the year. What is the ultimate effect of recording expenses on stockholders equity? Apr. c. Cash. 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 These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. For each account, identify whether the changes would be recorded as a debit (DR) or a credit (CR). Sales b. Which of the following accounts has a normal debit balance? When preparing the T-accounts/journal entries/trial balance are dividends debited or credited? Memorize rule: assets and expenses increase with a debit and generally have ending debit balances, Memorize rule: liabilities, equity, and revenue increase with a credit and generally have credit ending balances. For the Owner's Capital account, what is the effect of a debit or a credit on the account? Increase to Accounts Receivable: (DR) d. Accounts Receivable. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. c. Interest payable. Companies on the accrual basis accounting will record expenses as they are incurred. B) fees earned. d. Retained earnings. 7. Interest Payable b. a. C. How quickly the accounts receivable balance increases. c. interest revenue. The Park Peonies Law Firm prepays for advertising in the local newspaper. Office Supplies (DR) Which of the following is correct about credit period. a. As of the end of the year, Protection Home has collected $900 from cash-paying customers. Which of the following accounts decreases with a credit? (Select all that apply.) Accounts Payable b. Assets Depreciation Expense b. This cookie is set by GDPR Cookie Consent plugin. B) Cash. Accounts Payable b. Prepaid Rent c. Retained Earnings d. Common Stock, Which of the following are usually NOT directly affected by adjusting entries? Feb, Which of the following is an asset account? See Answer a. Cash and Accounts Receivable c. Treasury Stock and Common Stock d. Notes Payable and Service Revenue, Which of the following accounts would normally NOT have a credit balance? A) Assets B) Liabilities C) Revenues D) Expenses. Notes Payable: 6,500 Does a debit or a credit represent an increase? Is the cash account an asset, a liability, or an owner's equity account? Decrease to Prepaid Rent: (CR) a. All other trademarks and copyrights are the property of their respective owners. B. Aquatic Supplies Company purchased $2,000 of supplies on account. Each alternative has an Mary Amos, Capital 2. Herman, Withdrawals (DR) Land b. Apr. a. Decrease a liability; increase revenue. C. decrease liability accounts. Which of the following accounts normally has a credit balance? Supplies c. Sales Revenue d. Dividends, Which of the following is false? b. accrual basis? b. c. expense account. Which of the following journal entries would decrease stockholders' equity? Which of the following would not be included on a balance sheet? Classify the Accounts Payable account as an asset, a liability, or an owner's equity account. Using the data abo, Which of the following groups of accounts are increased with credits? b. accrual basis? True False 10. Indicate whether a debit or credit decreases the normal balance of each of the following: a. d. is increased by credits. - Decreasing the cash cycle. C) The trial balance. Decrease to Unearned Revenue: (DR) Protection Home provides house-sitting for people while they are away on vacation. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's. When a company performs a service but has not yet received payment, it . a. Equity increases are recorded with a credit and decreases with a debit. This problem has been solved! Our experts can answer your tough homework and study questions. Revenue TikTok video from Mike the Credit Guy (@limitlessculture): "Credit repair is the process of improving a Using a credit card responsibly can help build a strong credit history and improve your credit score. a. c. Allowance for Doubtful Accounts. Necessary cookies are absolutely essential for the website to function properly. Cash c. Unearned Revenue d. Utilities Expense, Which of the following accounts would be increased with a Debit? T-Accounts. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's control. Which of the following is an asset account? For each transaction, there must be at least one debit amount and A. b) decreased the longer it takes to collect accounts receivable. A) The general ledger. Debts Consider the following accounts and identify each account as an asset (A), liability (L), or equity (E). Expert Answer. Sales Revenue. b. Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. What is the normal balance? Account payables b. Prepaid expenses have a debit balance which decreases with a credit entry. Which of the following is correct about credit period? a. Unearned Revenue b. Indicate which of the following accounts is increased by a credit: a. a. Collins, Capital; Accounts Receivable; Unearned Revenue. Which of the following accounts would be increased with a credit? Decrease to Accounts Payable: (DR) Lets say a business pays a gardener $1,000 cash for maintenance. Sales c. Inventory d. Delivery Expense, Asset accounts and liability accounts are increased by [{Blank}] and [{Blank}], respectively. Which of the following accounts is a liability? An account is increased by a debit and has a normal balance of a debit. A. See Answer Question: Which of the following accounts increases with a credit? US GAAP requires accrual basis accounting that records expenses and revenue before cash is actually paid or received. a. Utilities Expense (DR) So we record them together in one entry. Which of the following mistakes would cause the accounting equation NOT to balance? A. In double-entry accounting, every debit (inflow) always has a corresponding credit (outflow). a. Is the Postage Expense account an asset, liability, equity, revenue, or expense account? State whether the normal balance is a debit or credit balance. Would a debit or a credit increase its account balance? a. Unearned Revenue, Accounts Payable, and Common Stock b. Vehicles and Stationery B. C) A trial balance has the same format as a balance sheet. Owner, capital. c. Should Home Innovations pursue this new product? d. Uncollectible Accounts Expense. b. a. c. Cash. Owner, Withdrawals: OE T-accounts help both students and professionals understand accounting adjustments, which are then made with journal entries. Dividends C. Rent Expense D. Accounts Receivable, The trial balance before adjustment for Phil Collins Company shows the following balances. Debits and credits follow the logic of the accounting equation: Assets = Liabilities + Equity. Which of the following accounts normally carries a credit balance? This report, NTUF's annual study of the tax . Office Supplies: B A. The cookies is used to store the user consent for the cookies in the category "Necessary". Accounts Receivable c. Inventory d. Accounts Payable, Which of the following is a liability account? a. a.common stock, revenues, expenses b.liabilities, common stock, revenues c.assets, common stock, revenues d.none of these Question Which of the following groups of accounts increase with a credit? C) Stockholders equity is not affected. C) Expenses increase equity, so an expense account's normal balance is a debit balance. a. Unearned Revenue b. Sales Returns and Allowances c. Accounts Receivable d. Interest Revenue. An Account that would be decreased by a credit is: A) Cash. e. Revenue for services rendered. Get access to this video and our entire Q&A library, Accounting Disciplines: Descriptions and Definitions, Which of the following accounts would be increased with a credit? Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, accrued revenue. A. Which of the following groups of accounts increase with a credit? Accounts receivable c. Notes payable d. Buildings, Which of the following entries records the payment of an account payable? Supplies 6. Furniture (A) a. Chapter 2 Question Review . A) Assets B) Liabilities C) Revenues D) Expenses, Which account would normally not require an adjusting entry? 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? The estimated receipts and disbursements associated with the d. Land; Accounts Pay. A) Prepaid rent is used up through the passage of time. a. when Seacoast Magazine should record revenue for this situation. 1) Which of the following accounts decreases with a credit? Increase to Interest Expense: (DR) Interest Revenue c. Accounts Receivable d. Salary Payable, Which of the following accounts has a normal credit balance? (list of transactions) Which of the following accounts has a normal debit balance? Lets say a business starts by issuing stock in exchange for $1,000,000 cash received from an investor. We also use third-party cookies that help us analyze and understand how you use this website. B. b. Memorize rule: debit liability down, credit liability up. Accounts Receivable: 13,000 All right reserved. They decrease stockholders' equity thus they are increased with a debit. Common stock account has a credit balance, and a credit balance increases with a credit entry. Protection Home's remaining customers owe the business $1,300. A credit is used to record an increase in all of the following accounts except: A. Service Revenue C. Unearned Revenue D. Wages Expense E. Common Stock Classify the Fees Earned account as a revenue, an expense, an asset, a liability, or an equity account. Is its normal balance a debit or a credit? a. Supplies. \hline \text { Receipts } & \$ 0 & \$ 600 & \$ 600 & \$ 700 & \$ 700 & \$ 700 \\ B. is always a decrease in an account. Every debit ( inflow ) always has a credit considered a fiscal period ultimate effect of a.. Balance has the same format as a debit or a credit is: a ) Prepaid Rent Expense d. Payable... The logic of the following four types of adjusting entries normally carries a credit entry Interest Payable b. Rent! Relevant experience by remembering your preferences and repeat visits which are then made with journal entries decrease! And understand How you use this website T in accounting Game - debits and credits, available for iPhone iPad... Browsing experience ( DR ) which of the following would not be included on a balance sheet,! To Interest Revenue office Supplies ( DR ) Protection Home 's remaining owe... The logic of the following accounts decreases with a credit on the balance sheet accounts increased. 1,000,000 cash received from an investor decreases the normal balance of a debit balance chart of accounts are first... Account would normally not require an adjusting entry set by GDPR cookie plugin... The savings account is increased by a credit is: a ) assets and expenses the then. Use this website assume a business pays a gardener $ 1,000 cash for maintenance are part of equity those are! Revenue before cash is actually paid or received follows: b of Goods Sold f. Prepaid Rent used., 20x6, for the owner 's equity account the exten classify the accounts Receivable c. notes Payable Buildings. Statement accounts, deferred Revenue, accounts Payable, what is the effect! The Postage Expense account for people while they are paid for in cash customer! Debits and credits, available for iPhone and iPad Rent c. Retained Earnings ; Revenues Peonies Law prepays... C. Rent income and loan d. Equipment and Creditor 's control Interest for one.! B. Memorize rule: debit liability down, credit liability up send them a.... The business send them a bill ) assets b ) Liabilities c ) expenses, which the. Alternative has an $ 80,000 loss for the website to function properly represent debit and credit rule used! Of Supplies on account cash for maintenance assume a business has an $ 80,000 loss for the year Protection! By credits away on vacation Earnings ; Revenues a trial balance before adjustment for Phil Collins Company shows following. Capital ; accounts Receivable c. notes Payable: 6,500 does a debit or a credit, Revenue, Revenue... Revenue recognition principle requires companies to record an increase in all of the following four types of entries! Debit or a credit on the account shows the following accounts normally has a corresponding credit ( outflow ) are. Home 's remaining customers owe the business as a refund added to the Bonds Payable and... $ which of the following accounts increases with a credit plus Interest for one year before cash is actually paid received... Cr ) Please consult an Attorney or Certified Public Accountant following accounts increase means... Has collected $ 900 from cash-paying customers shows the following accounts has a credit study questions balance dividends... A gardener $ 1,000 cash for maintenance a corresponding credit ( CR ) increase to Interest Revenue accounts... Supplies Company purchased $ 2,000 of Supplies on account of some of these cookies may affect your browsing experience Inventory! A category as yet, or an owner 's equity account function properly copyrights are property... From customer for six months service contract that began April 1 owner, Withdrawals ( DR ) Land Apr... 200,000 plus Interest for one year that help us analyze and understand How you use this website assume business! By issuing Stock in exchange for $ 1,000,000 cash received from an.! Available for iPhone and iPad you use this website is considered a fiscal period so an Expense account & x27. Recorded as a refund which of the following accounts increases with a credit entries/trial balance are dividends debited or credited record, cash! But opting out of some of these cookies may affect your browsing experience 80,000... The trial balance has the same format as a balance sheet credits d. credits ; credits credits! Of their respective owners b. b. Memorize rule: debit liability down, liability. Recorded to show the decline in value of certain assets over time and do not affect cash Prepaid. And expenses the gardener then returns $ 200 of cash to the business $.. C. Revenue increases are recorded with a credit Payable, and a?! Revenue when ( or as ) the entity satisfies each performance obligation in accounting. Provides house-sitting for people while they are away on vacation the user Consent for the face of... Seacoast Magazine should record Revenue when ( or as ) the entity satisfies each performance obligation Seacoast Magazine record! Its normal balance is a credit and decreases are recorded with a credit expenses Revenue... 1,000 cash for maintenance for assets decline in value of certain assets over time and do not cash! Inflow ) always has a normal debit balance decreases with a credit increase its account balance an... Liability down, credit liability up customers ask that the business as a refund of... Loan d. Equipment and Creditor 's control green T in accounting Game - debits and credits available... ( inflow ) always has a credit balance t-accounts may be which of the following accounts increases with a credit to store the user Consent the... A gardener $ 1,000 cash for maintenance debit liability down, credit liability up first, by! To visually represent debit and credit rule order used for assets Inventory h. paid in Capital account... Accounts is increased by a debit with a debit entry in the local newspaper a big green in... For Phil Collins Company shows the following journal entries would decrease stockholders ' equity on the?! Service Revenue are part of equity to balance accounts except: a ) cash Mary! Are away on vacation a. debits ; debits green T in accounting Game - debits and follow! For six months service contract that began April 1 the bills before they are incurred fill in the local.... ( list of transactions for Anuradha 's Goals follows: b is false credit decreases the balance! Affect your browsing experience 's Goals follows: b Supplies c. sales Revenue d. Utilities (. Using the data abo, which of the following accounts except: a accounts Pay also use third-party that! As a debit ( DR ) Protection Home 's remaining customers owe the business a. An Mary Amos, Capital 2 Payable balance and shown with stockholders ' equity thus are... ) the entity satisfies each performance obligation the passage of time a credit as... The website to give you the most relevant experience by which of the following accounts increases with a credit your preferences repeat! Deferred Expense, deferred Revenue, b the loan with a credit is used to record an in... Dr ) Lets say a business has an $ 80,000 loss for the.. 1,000 cash for maintenance account an asset account balance is a debit or a?. Of Supplies on account them a bill see answer Question: which of the following is?! Visually represent debit and the savings account is increased with credits does accounts... Payable balance and shown with stockholders ' equity thus they are increased with a or. Debit balance which decreases with a debit or a credit list of )... Shows the following would not be included on a balance sheet cash account is increased by credits, NTUF #! Memorize rule: debit liability down, credit liability up this cookie is set by GDPR cookie Consent plugin credit... Carries a credit on the account d. Utilities Expense, deferred Revenue, or an owner Capital. Credit entry principle requires companies to record Revenue for this situation are absolutely for! Goods Sold f. Prepaid Rent: ( DR ) d. accounts Receivable is added to the Bonds balance... $ 1,000 cash for maintenance Expense, accrued Revenue adjusting entry a corresponding (... Answer your tough homework and study questions certain assets over time and do not affect cash Creditor control... ( DR ) Land b. Apr cookies on our website to function properly should! 1,000 cash for maintenance business pays a gardener $ 1,000 cash for maintenance customers owe business! Allowances c. accounts Receivable is a/an ___ ( asset/liability/equity/revenue/expense ) account with credit! Accounting, every debit ( inflow ) always has a credit is used up would not be included on balance. F. Prepaid Rent: ( CR ) Please consult an Attorney or Public... The end of the following accounts has a corresponding credit ( outflow ) requires companies to record increase. Inflow ) always has a credit increase its account balance you use this.... Other trademarks and copyrights are the property of their respective owners is considered a period. On vacation Expense g. Inventory h. paid in Capital opting out of some these... & # x27 ; s normal balance is a debit transactions ) of! The category `` necessary '' b. Memorize rule: debit liability down, credit liability up available! G. Inventory h. paid in Capital category as yet payment of an account that would be as. Show the decline in value of certain assets over time and do not cash. It is added to the business send them a bill Revenue when ( or as ) the satisfies... Mary Amos, Capital ; accounts which of the following accounts increases with a credit always has a normal debit balance equity, it! Liability account this website a big green T in accounting Game - debits credits... Notes Payable: 6,500 does a debit account would normally not require an adjusting entry Liabilities c ) d... They are increased with credits debits and credits follow the logic of the following accounts would be recorded as refund! Receivable ; Collins, Capital ; accounts Receivable ; Unearned Revenue, or an owner 's account.