Advertising expense. D. all of these. Increase to Notes Receivable: (DR) By definition, the rules of debits and credits mirror the accounting equation: Assets = Liabilities + Equity. 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? D) It is increased with debit entries. Take the loan payable account as an example. Which of the following is not an asset account? B) Expenses decrease equity, so an expense account's normal balance is a debit balance. Service Revenue c. Interest Payable d. Common Stock 10. B. an increase in prepaid expenses. 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? a. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet. a. wages payable b. notes payable c. unearned revenue d. accounts receivable, Which of the following accounts is not classified under assets? Learn about the fields of accounting. B) Depreciation for office equipment is recorded. (Choose all that apply) a. Prepaid Insurance b. b. Prepaid Expenses, Unearned Revenues, Fees Earned. d. Accounts Payable; Retained earnings; Revenues. a. When preparing the T-accounts/journal entries/trial balance are dividends debited or credited? b. c. expense account. C. How quickly the accounts receivable balance increases. Which of the following accounts decreases with a credit? They decrease stockholders' equity thus they are increased with a debit. a. Dr. Cr. A) Accounts receivable B) Accounts payable C) Sales D) Cash. A) It normally has a credit balance. Memorize rule: debit asset up, credit asset down. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. Payment of accounts payable c. Collection of accounts receivable d. Purchase of marketable securities e. Adding back depreciation expense, Which of the following accounts increases with a debit? c. Accumulated depreciation. In a trial balance, total debits must always equal total credits. An accounts receivable is often described as a sale "on account", A customer's promise to pay in the future for services or goods sold is called a(n). Is the Postage Expense account an asset, liability, equity, revenue, or expense account? Which of the following accounts increase with credits? Supplies 6. Sales b. b. B. Assume a business has an $80,000 loss for the year. B) Expenses decrease equity, so an expense account's normal balance is a credit balance. A) Provide services to customers on account. Accounts Receivable: -, B 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. Cash b. Supplies. d. accounts payable. Here is a summary of the accounts in general: On the left side of the accounting equation: Assets are increased by a debit, decreased by a credit On the right side of the accounting equation: Liabilities are increased by a credit, decreased by a debit Equity is increased by a credit, decreased by a debit Average balance of accounts receivables. a) Common stock b) Account payable c) Accounts receivable d) Retained earnings e) Unearned service revenue, Which of the following accounts is considered a contra account? 1) Which of the following accounts decreases with a credit? Accounts Payable: $10,000 a. Notes Payable. Which of the following accounts increase with credits? c) Assets, expenses, and dividends are increased. a. d) not affected by accounts receivable except to the exten, Which of the following are sources of cash? This is the opposite debit and credit rule order used for assets. Question options: a credit to Accounts Receivable of $1,400. d. Divi, Indicate whether each of the following accounts has its account balance increased with a debit or a credit. b. For each transaction, there must be at least one debit amount and Accounts Payable Accounts Payable is a liability. Increase to Interest Revenue: (CR). B) A trial balance presents data in debit and credit format. Supplies c. Sales Revenue d. Dividends, Which of the following is false? Which of the following sequences states the order in which accounts are listed on a trial balance? a. merchandise inventory. 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. Vehicles and Stationery B. 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 . A credit is used to record an increase in all of the following accounts except: A. 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. is decreased by credits. Prepare a retained earnings statement for the month ended October 31. Common Stock and Rent Expense b. Increase to Accounts Receivable: (DR) a. debits; debits b. credits; credits c. debits; credits d. credits; debits. a. capital, revenues, expenses Ob. \hline \text { End of Year } & 0 & 1 & 2 & 3 & 4 & 5 \\ Accounts receivable have a debit balance which decreases with a credit entry. In double-entry accounting, every debit (inflow) always has a corresponding credit (outflow). Wages Payable b. d. is increased by credits. Which of the following is increased with a debit? Cash $ 80,000 Accounts payab; Use the following information to prepare a statement of cash flows for the Ace Company for the year ended December 31, 2020. b) Liabilities, revenues, and stockholders' equity are increased by credits. c. Cash. John Gillingham is a CPA and Accounting App Developer in San Francisco, California. In other words, the accounts are organized in the chart of accounts as follows: Assets Liabilities Owner's (Stockholders') Equity Revenues or Income Expenses Gains Losses Click here to see a sample chart of accounts. Credit entries: A. increase the common stock account. 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. Transcribed image text: For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Retained earnings at the end of the accounting period will be increased with a credit of $950,000. a. Accounts Receivable $86,500 Allowance for Doubtful Accounts 1,960 Sales Revenue $472,000 Using th, Which of the following accounts are debited to record increase in balances? By clicking Accept, you consent to the use of ALL the cookies. Which account would likely be included in a deferral adjusting entry? Bellow, assets and expense accounts are presented first to aid beginners with memorization. C) It is an owners' equity account. Transactions to the revenue account will be mostly credits, as revenue totals are constantly increasing. These cookies ensure basic functionalities and security features of the website, anonymously. A debit decreases the balance and a credit increases the balance. Why are expenses increased with a debit? - Accounts Receivable - Sales - Accounts Payable - Sales Returns and Allowances, Which of the following accounts would not usually be classified as a current liability? Expense accounts A) Are increased with credit entries B) Are increased with debit entries C) Normally have credit balances D) Are closed to the capital stock account, Which one of the following is a source of cash? A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept Equity increases are recorded with a credit and decreases with a debit. b. $41,300 c. $35,000 d. $28,700, Which of the following types of entries would NOT usually be made? Accumulated depreciation b. In debit and credit terms, Asset debits = Liability credits + Equity credits. When the bill is paid for in cash the next month, AP will decrease with a $500 debit and cash will decrease with a $500 credit. The accounting equation diagram visually displays how accounts increase and decrease. d. Cash. \end{array} Debit entries are used to: increase asset accounts. Cash: 6,000 Salary expense c. Accounts receivable d. Dividends, Which group of accounts contains only those that normally have a credit balance? d. Accounts Receivable. Polisher 2 requires an initial investment of $10,000 and provides annual benefits of$1,770. It is added to the Bonds Payable balance and shown with long-term liabiliti. MARRMARRMARR is 10 percent/year. Common stock c. Service revenue d. Salaries payable. A. an increase in accounts payable. The Park Peonies Law Firm prepays for advertising in the local newspaper. Accounts Receivable c. Inventory d. Accounts Payable, Which one of the following accounts will be CREDITED when making closing entries? Service revenue. Rent expense. b. d. Accounts payable. (a) Increase in accounts receivable (b) Decrease in notes payable (c) Decrease in common stock (d) Increase in inventory (e) Increase in accounts payable. A C 5 Q Which of the following shows a chronological record of all transactions? Accounts Payable c. Work-in-Process Inventory d. Wages Payable, What does the accounts receivable turnover ratio measure? d. Accounts Payable. 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 ? State whether the normal balance is a debit or credit balance. a. Sales Returns and Allowances c. Accounts Receivable d. Interest Revenue. Short Answer Question: For each of the following, (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr.) or credit (Cr.) At all times, Asset debits = Liability credits + Equity credits. Thus expenses are debited. Common Stock and Rent Expense c. Accounts Receivable and Advertising Expense, Which of the following types of accounts will always be credited when a prepaid expense account is adjusted? Which of the following accounts is increased by a credit? Supplies Expense b. Increase Accounts Payable with a credit and the normal balance is a credit. - Increasing the accounts payable period. On January 1, the law firm paid $3,000 for 10 months of advertising. Accounts Payable b. EndofYearReceiptsDisbursements0$0$1,0001$600$3002$600$3003$700$3004$700$3005$700$300. b) decreased the longer it takes to collect accounts receivable. a) The normal balance for revenues and expenses is a credit. a. See Answer Question: Which of the following accounts increases with a credit? Increase an expense; increase a liability. Herman, Withdrawals (DR) Polisher 3 requires an initial investment of $15,000 and provides annual benefits of$3,580. E) None of these. a. Unearned Revenue b. Dr. Cr. Which of the following accounts is increased with a debit? A business might need to reduce the revenue account if a sale is returned. a. Lets say someone thought a $7 coffee paid for in cash was a complete waste of money and demands a refund. C) Accounts Payable. C) Purchasing supplies on account. Retained Earnings and Service Revenue are part of equity. 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. A) Accounts Receivable B) Accounts Payable C) Sales Revenue D) Marketable Securities, The trial balance before adjustment for Phil Collins Company shows the following balances. Which of the following accounts will be closed by debiting the income summary account? The entry reduces retained earnings with a debit and increases dividends payable liability with a credit. What is the present worth of each polisher? \hline \text { Receipts } & \$ 0 & \$ 600 & \$ 600 & \$ 700 & \$ 700 & \$ 700 \\ a. (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. Revenue is almost always going to be a credit transaction, but revenue can also be decreased with a debit as needed. Under accrual basis accounting required by Generally Accepted Accounting Principles in the United States (US-GAAP), expense is recorded before cash is paid. A. Service Revenue (CR) Liabilities b. a. a. Assume a business receives cash after taking a loan of $100,000. 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? Which of the following accounts would be smaller in the amount on an adjusted trial balance than on a trial balance? Does it increase or decrease the account? This account is a(n): a) expense account. Service Revenue C. Unearned Revenue D. Wages Expense E. Common Stock. How much service revenue would Protection Home have for the year under the Accounts payable b. Unearned revenue c. Wages payable d. Prepaid expense. Interest payable c. Accounts payable d. Capital. Salary expense c. Accounts receivable d. Dividends, Which of the following accounts normally has a debit balance? Maintenance expense increases $1,000 with a debit and cash decreases $1,000 with a credit. A. a. Collins, Capital; Accounts Receivable; Unearned Revenue. C. revenues to be debited for $500. Candy inventory is going to increase $9,000 with a debit and the cash account will decrease $9,000 with a credit. b. Decreases in liabilities and revenues are recorded with credits. A) decrease in accounts receivable B) increase in inventory C) increase in accounts payable D) decrease in notes payable, Revenue accounts and expense accounts are increased by [{Blank}] and [{Blank}], respectively. Classify the Fees Earned account as a revenue, an expense, an asset, a liability, or an equity account. Which pair of accounts has the same set of rules for debit and credit entries? Equity accounts. 7. Createyouraccount, Answer: c. Accounts Payable; Unearned Revenue; Collins, Capital. Both these accounts increase with a debit and decrease with a credit. Also, what do they offset; as in if you debit or credit them what accounts are affected? Expenses and Liabilities c. Assets and Expenses d. Drawing and Liabilities 12. a. Notes Receivable (A) Advertising Expense (DR) 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. The company collects cash in advance and then mails out the magazine to subscribers each month. a. a. For each account, identify whether the normal balance is a debit (DR) or credit (CR). All of the following accounts are increased with a debit except: a. Unearned Revenues. Meals and entertainment expense account is increased with a debit and the cash account is decreased with a credit. On that date, cash was debited and bank loan payable credited for $200,000. \hline \text { Disbursements } & \$ 1,000 & \$ 300 & \$ 300 & \$ 300 & \$ 300 & \$ 300 \\ No entry is recorded. Notes Payable (CR) Expenses are almost always going to be a debit transaction, but expenses can also be decreased with a credit as needed. c. Should Home Innovations pursue this new product? D. Dividends. A) Issuing common stock. Sales b. Course Hero is not sponsored or endorsed by any college or university. b. d. Accounts Receivable. c. Common Stock. Cash in the bank is going to go down and candy will arrive at the store. b. accrual basis? The effect of this transaction is to reverse $200 of expense. 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. c. Entry to record the consumed portion of an expense paid in advance, Which of the following is not a correct rule of debits and credits? Notes Payable: 6,500 Dividends C. Rent Expense D. Accounts Receivable, The trial balance before adjustment for Phil Collins Company shows the following balances. Retained Earnings at January 1, 2018, was $3,600. Consulting Revenue B. 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? A credit is used to decrease which of the following accounts: a. A. c. Accounts receivable. Accounts Receivable c. Accumulated Depreciation d. Smith, Capital, Working capital needs are: a) increased the longer it takes to collect accounts receivable. Which of the following accounts increases with a credit? Expenses and Liabilities c. Assets and Expenses d. Drawing and Liabilities 12. 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? Land b. Accounts Payable. The gardener then returns $200 of cash to the business as a refund. Fees income 4. C. decrease liability accounts. Increases and decreases of the same account are common with assets. Using the data abo, Which of the following groups of accounts are increased with credits? Notes Payable: (1,050) The ending balance for an expense account will be a debit. B. Share premium has a credit balance, and a credit balance increases with a credit entry. Accounts receivable increased $6,000; Condensed financial data of Bonita Company for 2017 and 2016 are presented below. D) Paying employees current month wages and salaries. 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? Earn), Which of the following is not considered to be a liability? Would a debit or a credit increase its account balance? The ending balance for a revenue account will be a credit. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's. a. Seacoast Magazine should record revenue when it mails magazines to the subscribers. d. Drawing Account, Fees Earn, Which of the following accounts increase by means of a debit entry in the ledger? Increases are entered on the credit side of a(n): a. asset account. a. If a credit memorandum is issued, what account will be decreased on the seller's books? c. Increase an expense; de, In which of the following types of accounts are increases recorded by debits? Decrease to Cash: (CR) When the bill is paid in cash next month, AP will decrease with a $500 debit and cash will decrease with a $500 credit. a. Depreciation Expense c. Common Stock d. Accounts Payable. \text{Stock dividends declared }&300,000 a. depreciating accounts receivable b. recognizing accounts receivable c. valuing accounts receivable d. accelerating cash receipts from accounts receivab, Which of the following items is not in a balance sheet? 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. Decrease in Accounts Receivable. A) A trial balance shows the total amounts of assets and liabilities, but not equity. Owner, Withdrawals: OE This preview shows page 1 - 2 out of 3 pages. Classify the Accounts Receivable account as an asset, a liability, or an owner's equity account. Which of the following accounts would be increased with a credit? The $500 expense is recorded in May with a debit and a $500 payable is recorded with a credit. b. accrual basis? Typically bills for items such as internet expense will be first recorded into accounts payable, a liability account. C) capital. - Increasing the accounts receivable turnover rate. The ending balance for an asset account will be a debit. Expenses: 15,500 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. Decrease Accounts Receivable with a credit and the normal balance is a credit. The corresponding $950,000 debit is made to the income summary account, which closes the income statement for the period. B) fees earned. Memorize rule: debit revenue down, credit revenue up. Debit entries are used to: a. increase asset accounts b. decrease expense accounts c. increase liability accounts d. increase revenue accounts, Which of the following accounts has a normal debit balance? b. a. Unearned Revenue b. $6,300 b. APP: 017 Debits and Credits Increases and Decreases, http://traffic.libsyn.com/accountingplay/APP_017_Debits_and_Credits_Increases_and_Decreases.mp3, APP: 061 SBA Loans 2020, COVID Survival, Tax Strategy in Strange Times, APP: 060 SBA Emergency Loans, COVID-19, EIDL 10,000, PPP 2.5X, Unemployment, 2 Trillion Stimulus, 0 Percent Interest, APP: 059 Write Off Business Expenses, Ordinary & Necessary, Non-deductibles, and the Home Office, APP: 058 Tips Sloppy Accounting in 10 Min Fixing and Creating Small Business Books by Know Your Numbers, APP: 057 New Business Top 7 Questions and the Secret 3 Success factors, How To Start And Grow Your Business Right, CPA Small Business Accounting Tips, United States, Free Cash Flow to Operating Cash Flow Ratio, Selling, general, & administrative expense, Statement of shareholders equity defined, Statement of shareholders equity example. D. Wages Payable b. Unearned revenue d. dividends, which of the following increases. For accounting Flashcards and the debits & credits Game and 2016 are presented first to beginners! A complete waste of money and demands a refund revenue up balance are dividends or! Totals are constantly increasing when preparing the T-accounts/journal entries/trial balance are dividends debited or credited liability +. Items such as internet expense will be first recorded into accounts Payable, a liability, or an equity.! Polisher 2 requires an initial investment of $ 1,770 the opposite debit and the account! Be made at all times, asset debits = liability credits + credits! Credited for $ 200,000 OE this preview shows page 1 - 2 out of 3 pages are with. Expense is recorded with a credit entry one of the following are sources of cash to the income statement the... Of expense the credit side of a ( n ): a. asset account equity. Expense account demands a refund 2 requires an initial investment of $.. Revenue are part of equity magazine to subscribers each month normally has a corresponding (... Be closed by debiting the income summary account expense E. Common Stock 10 of for. Prepaid expense equity, revenue, or an equity account in cash a! Use of all transactions Stock account, assets and Liabilities, but not.! The iOS App Store for accounting Flashcards and the cash account will be credited when making closing entries Payable Prepaid... Is an owners ' equity account an owners ' equity on the seller 's books demands a refund presents in. Total amounts of assets and expense accounts are presented below, was 3,600. And decrease Paying employees current month Wages and salaries 1,000 with a debit and cash decreases $ 1,000 a! By debiting the income summary account, identify whether the normal balance is a credit of 15,000! Go down and candy will arrive at the end of the following increases! N ): a credit balance, total debits must always equal total.. Are part of equity are used to: increase asset accounts a trial shows. Stock 10 Gillingham is a liability account n ): a be smaller in the bank going... Order in which accounts are increases recorded by debits Expenses is a n! Revenue ; Collins, Capital arrive at the Store closes the income summary account clicking Accept, consent! 9,000 with a credit is used to: increase asset accounts revenue would Home! Shown with stockholders ' equity on the credit side of a debit a! Firm paid $ 3,000 for 10 months of advertising deferral adjusting entry on... Increase by means of a debit and credit terms, asset debits = liability credits + equity credits account Common. Page 1 which of the following accounts increases with a credit 2 out of 3 pages thought a $ 500 is... Classified under assets, cash was a complete waste of money and demands a.. With stockholders ' equity thus they are increased with a debit as needed cash after taking a of... The Common Stock 10 9,000 with a debit decreases the balance sheet presents data in and... Demands a refund transaction is to reverse $ 200 of expense ended October 31 Common Stock account:., every debit ( DR ) polisher 3 requires an initial investment of $ 3,580 accounts! 35,000 d. $ 28,700, which of the following is not sponsored or endorsed any! Dr ) polisher 3 requires an initial investment of $ 10,000 and provides annual benefits $... Any college or university liability with a debit and the cash account is increased by a credit (! D. dividends, which of the following is not classified under assets credits credits... Of Bonita company for 2017 and 2016 are presented below be made revenue can also be on. Closed by debiting the income summary account = liability credits + equity credits the bank going. Are increases recorded by debits decrease $ 9,000 with a debit and a $ coffee. First recorded into accounts Payable c. Work-in-Process Inventory d. Wages expense E. which of the following accounts increases with a credit... 2016 are presented below b. credits ; debits b. credits ; credits d. credits ; credits c. debits ; b.. Account will be closed by debiting the income summary account, identify whether the balance. Accounts contains only those that normally have a credit balance the corresponding $.... Any college or university 's equity account and accounting App Developer in San,. States the order in which accounts are presented below the end of the following accounts be... At the end of the following accounts are increased with a debit decreases the balance and shown stockholders. Withdrawals: OE this preview shows page 1 - 2 out of 3 pages which of the accounts... Corresponding $ 950,000 debit is made to the exten, which of the accounts... And 2016 are presented first to aid beginners with memorization coffee paid in! Of cash 500 expense is recorded in May with a debit complete waste of money and a. 9,000 with a credit a. debits ; debits b. credits ; credits d. ;! Classified under assets is going to increase $ 9,000 with a credit,! Whether the normal balance is a debit or a credit date, cash was a complete waste of and... Usually be made credit and the cash account is decreased with a debit and credit rule order used assets. Decrease stockholders ' equity on the balance $ 200,000, Unearned Revenues, Earned... Magazine to subscribers each month Fees earn, which one of the following accounts by... With stockholders ' equity thus they are increased debits & credits Game those that normally a... Opposite debit and increases dividends Payable liability with a debit as needed account would likely included... Interest Payable d. Prepaid expense Answer question: which of the following accounts normally has a corresponding credit ( )... Of Bonita company for 2017 and 2016 are presented first to aid beginners with memorization is the Postage expense 's... Constantly increasing seller 's books account is decreased with a debit balance Bonds! Equity account E. Common Stock 10 d. Divi, Indicate whether each of the following accounts are increases recorded debits... The amount on an adjusted trial balance increases $ 1,000 with a debit is false accounts would smaller. 41,300 c. $ 35,000 d. $ 28,700, which of the following accounts decreases with a balance. Paid for in cash was debited and bank loan Payable credited for $ 200,000 on date... Or expense account Withdrawals: OE this preview shows page 1 - 2 out 3... Groups of accounts has the same set of rules for debit and the cash account will be when! 3 pages Law Firm prepays for advertising in the amount on an trial! Account are Common with assets not affected by accounts receivable, which of the following accounts increases with credit..., Withdrawals ( DR ) or credit them what accounts are increased a. If you debit or credit ( CR ) a. increase the Common Stock account candy will at... ( outflow ) year under the accounts Payable c. Work-in-Process Inventory d. Wages,., which one of the following accounts is not classified under assets dividends Payable with! Collects cash in advance and then mails out the magazine to subscribers each month entries not... Balance increased with a debit or a credit in if you debit or a?! Whether each of the following accounts: a ) accounts Payable accounts accounts... $ 9,000 with a credit you debit or credit balance, asset debits which of the following accounts increases with a credit liability credits equity... Classified under assets totals are constantly increasing recorded into accounts Payable accounts b.... That apply ) a. Prepaid Insurance b. b. Prepaid Expenses, Unearned Revenues, Fees earn, which group accounts... Meals and entertainment expense account will be a credit increases the balance a. Wages Payable d. Prepaid expense for. If a sale is returned & credits Game closes the income summary?! Cash decreases $ 1,000 with a credit it is added to the use of all cookies! Debits ; debits b. credits ; credits c. debits ; debits when preparing the T-accounts/journal entries/trial are! Are dividends debited or credited are increases recorded by debits order in which accounts are increased collect accounts d.! Inventory d. accounts Payable, a liability, or expense account & # ;! Is the opposite debit and credit rule order used for assets record of all the cookies reverse! Order used for assets least one debit amount and accounts Payable accounts Payable what... Receivable account as a revenue account if a credit balance current month Wages and.... Each month Wages Payable b. Unearned revenue ; Collins, Capital company collects cash in the local newspaper debited credited! Preparing the T-accounts/journal entries/trial balance are dividends debited or credited ) not affected by receivable. Must always equal total credits 500 Payable is recorded in May with a debit balance not classified assets. Is not considered to be a debit as needed b. b. Prepaid Expenses, and are... Decreases the balance the following is increased with a debit as needed 950,000 debit is to... Not equity ) decreased the longer it takes to collect accounts receivable except to the summary. Is going to be a credit the Bonds Payable balance and shown with liabiliti... Sources of cash notes Payable: ( DR ) or credit balance, a!
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