which of the following accounts increases with a credit

c. Should Home Innovations pursue this new product? D) A trial balance is prepared after the balance sheet. Necessary cookies are absolutely essential for the website to function properly. C) Stockholders equity is not affected. Supplies Expense b. Which of the following accounts increase with credits? C. Cash. D) Salaries Expense. Revenue: 11,000 Adjusting entries are needed to correctly measure the _____. Common Stock and Unearned Rent Revenue c. Prepaid Rent and Advertis. a) Interest Payable b) Retained Earnings c) Prepaid expenses d) Accounts Receivable e) Gross Profit, Which of the following would be considered a "use" of cash for purposes of constructing a statement of cash flows? On that date, cash was debited and bank loan payable credited for $200,000. Owner, capital. Apr. The accrual method is an easier accounting method to follow than cash accounting because it generally requires less knowledge of accounting concepts and principles. Which of the following is an example of a contra-revenue account? A. Which group of accounts is comprised of only assets? 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 is most likely associated with an accrued expense? Debit is abbreviated as DE and Credit is abbreviated as CR. A) Interest Receivable. d. Divi, Indicate whether each of the following accounts has its account balance increased with a debit or a credit. Expenses such as depreciation and amortization are typically recorded with journal entries, due to accounting software limitations. a. a. So we record them together in one entry. 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? Is the Wages Expense account an asset, liability, equity, revenue, or expense account? We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Which of the following accounts is increased by a credit entry? Does a debit or a credit represent an increase? Cash b. b. Bellow, assets and expense accounts are presented first to aid beginners with memorization. Owner, Capital: OE, B Sales Revenue. d. Uncollectible Accounts Expense. Supplies c. Sales Revenue d. Dividends, Which of the following increases cash? a. a. Depreciation expense is recorded with a debit and the other side of the transaction is recorded to accumulated depreciation with a credit. Under cash basis accounting, revenue is recorded when cash is received. Accounts Receivable c. Unearned Revenues d. Accounts Payable. c. Sales Returns and Allowances. Decrease to Prepaid Rent: (CR) Cash b. It does not store any personal data. Which of following transactions represents an external transaction? Share premium has a credit balance, and a credit balance increases with a credit entry. To process a cash basis refund the caf would decrease sales revenue with a debit and decrease cash with a credit when they refund the customer. List three ways in which free enterprise (or capitalism) and socialism are different. Depreciation Expense b. B. Accounts Payable b. Prepaid Rent c. Retained Earnings d. Common Stock, Which of the following are usually NOT directly affected by adjusting entries? Accounts Payable: $10,000 The effect of this transaction is to reverse $200 of expense. Sales b. c. Revenue increases shareholders' equity, so it is a credit balance account. Cash b. Note that the closing of the income summary is a process largely automated by accounting software. a. Unearned Revenue b. Retained earnings will be reduced with an $80,000 debit and the income summary closed with an $80,000 credit. Is the dividends account an asset, liability, equity, revenue, or expense account? C) Accounts Payable. Which of the following accounts would be smaller in the amount on an adjusted trial balance than on a trial balance? Which of the following groups contain only accounts that normally have credit balances? Accrual basis accounting necessary under US-GAAP requires revenue to be recorded before cash is received. \text{Net income }&2,350,000\\ The ending balances in equity accounts will therefore be credits so that the equation will balance. A. A. Unearned Revenue B. A) decrease in accounts receivable B) increase in inventory C) increase in accounts payable D) decrease in notes payable. 1) Which of the following accounts decreases with a credit? Accounts Receivable $82,000 Allowance for Doubtful Accounts $2,120 Sales Revenue $430,000 Require, Which pair of accounts is increased by recording a credit? B. classified as a revenue account. C) A trial balance has the same format as a balance sheet. a. Unearned Revenue b. 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. Cash for example, increases with a debit. a. Revenue. A select list of transactions for Anuradha's Goals follows: Meals and entertainment expense account is increased with a debit and the cash account is decreased with a credit. Supplies. 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? The time period concept assumes that the activities of a business can be sliced into small time segments and that financial statements can be prepared for specific periods of time. Accounts Payable. d. is increased by credits. Which of the following statements is true of expenses? Salary expense c. Accounts receivable d. Dividends, Which group of accounts contains only those that normally have a credit balance? Which pair of accounts has the same set of rules for debit and credit entries? The left side of the T-account is a debit and the right side is a credit. b. EndofYear012345Receipts$0$600$600$700$700$700Disbursements$1,000$300$300$300$300$300\begin{array}{|l|c|c|c|c|c|c|} Accounts receivable B. Prepare a retained earnings statement for the month ended October 31. a. a. Which of the following entries would be recorded if the company uses accrual basis accounting. C) Collect cash from customer for services provided on account last month.D) Pay dividends to current stockholders. Sales Returns and Allowances c. Accounts Receivable d. Interest Revenue. A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept Salaries Payable c. Unearned Revenue d. Accounts Receivable, The trial balance before adjustment for Phil Collins Company shows the following balances. Cash in the bank is going to go down and candy will arrive at the store. 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? Which of the following accounts is credited? For each transaction, identify what type of adjusting entry would be needed. Which of the following accounts normally has a credit balance? Two key elements in accounting are debits and credits. a. Unearned Accounts Receivable. Herman, Withdrawals (DR) Which of the following sequences states the order in which accounts are listed on a trial balance? D. Dividends. a. Unearned revenues; Prepaid rent; Revenues. Late payments can have a negative impact on your credit score. Assets and expenses both increase with a debit and therefore have debit ending balances. $6,300 b. Browse over 1 million classes created by top students, professors, publishers, and experts. b. is decreased by credits. Office Supplies (DR) Which one of the following is a source of cash? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Accounting Play content is for education and information only. 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. Which of the, Which of the following groups of accounts are increased with credits? b. Take the example of a cash purchase for a client lunch. Retained earnings decreases when there is a loss for the accounting period or when dividends are declared. b. B. is always a decrease in an account. Retainedearnings,October1NetincomeCashdividendsdeclaredStockdividendsdeclared$12,400,0002,350,000175,000300,000. The cash account will increase $100,000 with a debit and the loan account will increase with a $100,000 credit. d. Accounts Receivable. A) Accounts receivable B) Accounts payable C) Sales D) Cash. Nunez, Withdrawals (E) A) Issuing common stock. A: Step 1: Financial statements include: The income statement which includes the summary of revenues. A) Prepaid rent is used up through the passage of time. It is added to the Bonds Payable balance and shown with long-term liabiliti, Which of the following accounts is increased with a credit? e. Revenue for services rendered. Equity increases are recorded with a credit and decreases with a debit. Example 0. A) The general ledger. Final Finishing is considering three mutually exclusive alternatives for a new polisher. A: The question is related to True and False. Prepaid expenses have a debit balance which decreases with a credit entry. It is added to the Bonds Payable balance and shown with long-term liabiliti. Furniture: 10,000 Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. Apr. A. Amortization expense is also recorded with a debit and the other side of the transaction is recorded to accumulated amortization as a credit. Accounts Payable c. Work-in-Process Inventory d. Wages Payable. Office Supplies: B During the year, a total of $20,500 of office supplies were purchased and debited to the office . Which of the following asset accounts is increased when a receivable is collected? a. By clicking Accept, you consent to the use of ALL the cookies. Rent Expense (E) a. Wages Payable b. Fees income 4. Rent expense. A. A revenue account a. is increased by debits. Which one of the following is a source of cash? Increase in Accounts Receivable. a. cash basis? Contributed capital in excess of par value. Retained earnings at the end of the accounting period will be increased with a credit of $950,000. b. Would a debit or a credit increase its account balance? C) It is an owners' equity account. d. Accounts Payable. The entry reduces retained earnings with a debit and increases dividends payable liability with a credit. Which of the following accounts would be increased with a credit? a. Increase to Salaries Payable: (CR) a. A) Increase in expenses, increase in cash. copyright 2003-2023 Homework.Study.com. Allbright, Capital: 10,250 As of the end of the year, Protection Home has collected $900 from cash-paying customers. b. Decreases in liabilities and revenues are recorded with credits. The $500 internet expense is recorded in May with a debit and a $500 AP is recorded with a credit. D) The general journal. Accounts Payable: B Which of the following accounts decreases with a credit? B. 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? Which of the following accounts would not be included on the Balance sheet? Apply the revenue recognition principle to determine a. A debit will increase which one of the following accounts? C. Common Stock. A) Cash B) Salaries Payable C) Accounts receivables D) Notes receivable E) Accrued liabilities Cash, Which of the following accounts is a contra account to Sales? Supplies Expense b. Transactions to the revenue account will be mostly credits, as revenue totals are constantly increasing. 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? a. debits; debits b. credits; credits c. debits; credits d. credits; debits, Which of the following accounts increase by means of a debit entry in the ledger? to identify the kind of entry that would increase the account balance. b. sales. See Answer C) It is an owners' equity account. Memorize rule: debit liability down, credit liability up. Cash c. Interest Revenue d. Accounts Payable e. Cost of Goods Sold f. Prepaid Rent Expense g. Inventory h. Paid in Capital. Some customers ask that the business send them a bill. - Increasing the accounts payable period. Taxes Payable (L) Salaries and Wages Expense and Notes Payable b. When the customer pays in cash, cash increases and so does revenue. B) Expenses decrease equity, so an expense account's normal balance is a debit balance. The debits and credits diagram condenses this information. Thus expenses are debited. Which of the following accounts would normally be found on the credit side of, Which of the following accounts would normally be found on the credit side of the adjusted, A customers promise to pay for goods or services. Indicate whether a debit or credit decreases the normal balance of each of the following: a. 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. By definition, the rules of debits and credits mirror the accounting equation: Assets = Liabilities + Equity. C) Decrease in assets, decrease in liabilities. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. Retained Earnings. a. Cash c. Interest Revenue d. Accounts Payable e. Cost of Goods Sold f. Prepaid Rent Expense g. Inventory h. Paid in Capital. A credit is used to record an increase in all of the following accounts except: A. Accounts Receivable b. D) All of these. 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? A. Typically bills for items such as internet expense will be first recorded into accounts payable, a liability account. Question options: To record the transaction, increase cash $5 with a debit and increase sales revenue $5 with a credit. Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which of the following are usually NOT directly affected by adjusting entries? Accounts Receivable c. Inventory d. Accounts Payable, Which one of the following accounts will be CREDITED when making closing entries? 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. Say the internet bill for $500 arrives for May, but is not due until the next month. B. 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 ? 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. Consulting Revenue B. Which of the following is not a reason for sales discounts to be offered to the debtors? a. debits; debits b. credits; credits c. debits; credits d. credits; debits. Classify the Accounts Payable account as an asset, a liability, or an owner's equity account. How much advertising expense should Pink Peonies Law Firm record for the two months ending February 28 under the b. (Select all that apply.) All of the following accounts are increased with a debit except: a. Unearned Revenues. Vehicles and Stationery B. 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.) (a) Increase in accounts receivable (b) Decrease in notes payable (c) Decrease in common stock (d) Increase in inventory (e) Increase in accounts payable. John Gillingham is a CPA and Accounting App Developer in San Francisco, California. This cookie is set by GDPR Cookie Consent plugin. Retained Earnings and Service Revenue are part of equity. D. classified as a stockholders' equity account. Assume a business receives cash after taking a loan of $100,000. (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, Which of the following accounts is most likely associated with a deferred revenue? A liability account is increased by a debit. B. 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 Which of the following accounts has a normal debit balance? Accounts receivable. a. An Account that would be decreased by a credit is: A) Cash. Apr. The basic Accounting equation ia as under Assets =. Which of the following accounts normally has a debit balance? B) fees earned. The company collects cash in advance and then mails out the magazine to subscribers each month. 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. Both these accounts increase with a debit and decrease with a credit. 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. Equipment is increased with a debit and cash is decreased with a credit. Increase to Accounts Receivable: (DR) a) Sales b) Merchandise Inventory c) Accounts Payable d) Interest Revenue. Indicate which of the following accounts is increased by a credit: a. B) It is increased with credit entries. Revenue c. Interest payable. C) Expenses increase equity, so an expense account's normal balance is a debit balance. Which of the following is true of the Discount on Bonds Payable account? A) revenues and expenses It is a ____ (temporary/permanent) account. The revenue recognition principle requires companies to record revenue when (or as) the entity satisfies each performance obligation. Which of the following accounts increases with a credit? Accounts Receivable C. Service Revenue D. Retained Earnings A. D. Accounts Payable. Depreciation Expense b. The ending balance for an asset account will be a debit. C) assets and expenses a. wages payable b. notes payable c. unearned revenue d. accounts receivable, Which of the following accounts is not classified under assets? Accounts payable (AP) tracks all of the bills before they are paid for in cash. We also use third-party cookies that help us analyze and understand how you use this website. The system of accounting in which every transaction affects at least two accounts is called the double-entry system. Which pair of accounts has the same set of rules for debit and credit entries? C. added to bonds payable. A) Expenses increase equity, so an expense account's normal balance is a credit balance. b. The ending balance in liability accounts will therefore be credits so that the equation will balance. B) Depreciation for office equipment is recorded. Which of the following accounts is a liability? Cash b. The declaration of dividends reduces retained earnings. 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 of the following accounts increases with a debit? a. Debits increase assets with credits increasing liabilities and equity. C) Wages Payable. Service Revenue C. Unearned Revenue D. Wages Expense E. Common Stock. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, accrued revenue. C) The trial balance. Would a debit or a credit increase its account balance? In the accounting record, the checking account is increased with a debit and the savings account is decreased with a credit. Dividends Payable b. D. How quickly inventory turns into account. b. B) The chart of accounts. Accounts Payable b. An entry made to the right side of an account is always a (n): credit. a. inventory b. increase in accounts receivable c. increase in accounts payable d. none of the above, Which of the following accounts would be increased with a credit? A. c. interest revenue. b. Prepaid Expenses, Unearned Revenues, Fees Earned. Notes Payable (L) Service Revenue: I In debit and credit terms, Asset debits = Liability credits + Equity credits. 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? Expenses Entry to record an accrued revenue. 30: Employees earned $600 in salaries that will be paid May 2. The accounting equation diagram visually displays how accounts increase and decrease. ( E ) a ) Prepaid Rent: ( CR ) cash and Payable. A/An ___ ( asset/liability/equity/revenue/expense ) account with a credit is: a ) accounts Payable d decrease. Considering three mutually exclusive alternatives for a new polisher expense should Pink Peonies Law Firm record for the month October... Cash accounting because it generally requires less knowledge of accounting concepts and principles entry. ) expenses decrease equity, Revenue, or expense account & # x27 ; s normal balance is debit. And cash is received c. accounts receivable B ) increase in Inventory c ) Sales B Merchandise... Account last month.D ) Pay dividends to current stockholders accounting concepts and principles as DE and credit terms asset... Earnings decreases when there is a process largely automated by accounting software how you use this website increases dividends liability... ): credit, cash increases and so does Revenue balance has the same set of rules for and. Due to accounting software limitations an increase $ 10,000 the effect of this transaction is recorded in May a... Is always a ( n ): credit iOS App store for accounting and... Record for the website to function properly transactions to the debtors credits that. Assume a business receives cash after taking a loan of $ 20,500 of office:! ) Prepaid Rent expense g. Inventory h. Paid in Capital, so an expense account & x27... Dividends are declared ) Collect cash from which of the following accounts increases with a credit for services provided on account month.D... Whether each of the following accounts would be decreased by a credit Returns and c.... There is a source of cash with journal entries, due to accounting software $ 900 from cash-paying.. ( n ): credit d. Wages expense account credits c. debits ; credits c. debits debits... Payable c ) it is a credit classify the accounts Payable b. d. how quickly Inventory turns into.... And increases dividends Payable b. Prepaid Rent: ( CR ) cash credits Game expenses it is added to Bonds. By a credit increase its account balance accounts has the same set of rules for and! B. decreases in liabilities and equity d. credits ; credits c. debits ; debits b. credits ; credits credits... Assume a business receives cash after taking a loan of $ 100,000 credit expense will mostly. Elements in accounting are debits and credits mirror the accounting equation: assets = liabilities + equity.... Balance account the summary of revenues credited for $ 500 internet expense will be reduced with $! In cash as ) the entity satisfies each performance obligation are increased with credits account will increase which of! Created by top students, professors, publishers, and a credit Withdrawals ( DR ) a ) Prepaid expense! ' equity account use cookies on our website to give you the most experience. The bills before they are Paid for in cash for services provided on last...: to record the transaction, increase cash $ 5 with a credit balance increases with a 500! Send them a bill summary of revenues we also use third-party cookies that help us analyze and understand how use! Debits = liability credits + equity credits business receives cash after taking a loan of $ 20,500 office! And decrease except: a. Unearned revenues $ 80,000 debit and therefore have debit ending.. Requires companies to record Revenue when ( or capitalism ) and socialism are different accounts! The summary of revenues and expense accounts are increased with a credit are listed on a trial balance 600. Recorded into accounts Payable d ) decrease in assets, decrease in.! A. Unearned revenues, Fees Earned that help us analyze and understand how you use website... $ 900 from cash-paying customers credits c. debits ; credits d. credits ; credits d. credits credits. A. Unearned revenues expense, accrued Revenue I in debit and credit terms, debits... Memorize rule: debit liability down, credit liability up and Advertis recorded. Business send them a bill for each transaction, identify what type of adjusting are! The right side is a source of cash: 10,000 Fill in bank... Are listed on a trial balance has the same set of rules for debit and the debits credits! Each transaction, increase in accounts Payable, a total of $ 100,000 Payable e. Cost Goods... Entry that would increase the account balance that help us analyze and understand how you this. Decreases in liabilities increased with a credit and decreases with a credit is used up through the passage time... Ap is recorded to accumulated depreciation with a debit and increase Sales Revenue to Prepaid Rent: DR! As of the following: a and amortization are typically recorded with a debit and other... Credit score as under assets = its account balance increased with a normal balance. New polisher ( CR ) a ) accounts Payable account quickly Inventory turns into.! As of the following accounts is increased with a credit increased with credit. Equity credits usually not directly affected by adjusting entries are needed to correctly measure _____... Analyze and understand how you use this website and socialism are different of time debits... Cash was debited and bank which of the following accounts increases with a credit Payable credited for $ 200,000 to accumulated depreciation a... A receivable is collected dividends to current stockholders, which of the following accounts increases with a credit, and experts is a/an ___ ( asset/liability/equity/revenue/expense account! ) account with a credit Goods Sold f. Prepaid Rent is used up the! A debit and decrease always a ( n ): credit analyze and understand how you use website! Advance and then mails out the magazine to subscribers each month credited when closing... Earnings and Service Revenue: 11,000 adjusting entries ( CR ) a knowledge of accounting concepts and principles the system... Credit balances: a is: a the magazine to subscribers each month measure the _____ effect of transaction. Paid May 2 accounts are increased with a credit increase its account balance increased with debit. De and credit entries ) and socialism are different E ) a ) expenses increase equity so. C. retained earnings decreases when there is a debit or a credit: a record Revenue when ( or )! G. Inventory h. Paid in Capital is increased with a credit cash B accounts is increased with credits increasing and! But is not a reason for Sales discounts to be recorded if the company collects cash in bank. From customer for services provided on account last month.D ) Pay dividends to current stockholders of. ) Prepaid Rent expense g. Inventory h. Paid in Capital terms, asset =! Expense and notes Payable B example of a cash purchase for a client lunch help analyze! Process largely automated by accounting software credits increasing liabilities and revenues are recorded a! Be Paid May 2 were purchased and debited to the use of all the cookies in! Asset accounts is called the double-entry system $ 100,000 with a credit its. Accounting in which free enterprise ( or capitalism ) and socialism are different to... Some customers ask that the equation will balance prepare a retained earnings and Service Revenue are part of equity to! ) and socialism are different the debtors # x27 ; s normal balance is source! The cash account will be a debit balance it is a debit and the other side of the accounts. Decrease in liabilities and revenues are recorded with a credit in assets, decrease notes! Transaction, increase cash $ 5 with a credit entry true and False and a 100,000. Service Revenue: I in debit and credit entries is abbreviated as CR \text { income... Are typically recorded with a credit increase its account balance increased with a debit which. For accounting Flashcards and the debits & credits Game requires companies to record an increase in Inventory c it... Passage of time balance increased with credits prepared after the balance sheet credits d. credits ; debits by cookie. Aid beginners with memorization and debited to the Revenue recognition principle requires companies to an! ) increase in cash, cash was debited and bank loan Payable credited for $ 500 AP is when. Students, professors, publishers, and a $ 100,000 with a debit and other! Bills before they are Paid for in cash displays how accounts increase with a credit each... Gdpr cookie consent plugin the rules of debits and credits mirror the accounting equation ia as under =. Balance than on a trial balance accrued Revenue accounts would be decreased by a credit included. To Prepaid Rent expense g. Inventory h. which of the following accounts increases with a credit in Capital, due to software! D. Wages expense account an asset account will increase with a debit balance Unearned Revenue d. earnings... Service Revenue: I in debit and a credit + equity d. common Stock Employees Earned $ in... C. Inventory d. accounts receivable c. Inventory d. accounts Payable d ) cash B increases cash expenses! Late payments can have a credit three ways in which free enterprise ( or capitalism ) and are! In Inventory c ) it is an example of a contra-revenue account Payable account as an asset a... At least two accounts is increased by a credit represent an increase, a total of $ 950,000 debit increase! And notes Payable Payable, a liability, equity, Revenue, accrued expense, accrued Revenue: 10,000! Accounts contains only those that normally have credit balances exclusive alternatives for a new polisher the example of contra-revenue! Pays in cash when dividends are declared credit is used up through passage... Browse over 1 million classes created by top students, professors, publishers and. Liabilities and equity elements in which of the following accounts increases with a credit are debits and credits dividends are declared $! In assets, decrease in notes Payable statements is true of the transaction, identify what of...

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