Accounts Payable b. Prepaid Rent c. Retained Earnings d. Common Stock, Which of the following are usually NOT directly affected by adjusting entries? B) It is increased with credit entries. A revenue account a. is increased by debits. (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? Which of the following decreases total stockholders equity? 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. a. 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? Accounts Receivable is an asset. 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. \end{array} Under the accrual basis, Protection Home will record $2,200 of service revenue for the year. Apr. copyright 2003-2023 Homework.Study.com. b. True False 9. All other trademarks and copyrights are the property of their respective owners. a. D) A trial balance is prepared after the balance sheet. Which of the following statements is true? MARR is Assets, liabilities b. Also, what do they offset; as in if you debit or credit them what accounts are affected? Common Stock and Rent Expense 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. c) Assets, expenses, and dividends are increased. d. Divi, Indicate whether each of the following accounts has its account balance increased with a debit or a credit. Which of following transactions represents an external transaction? By definition, the rules of debits and credits mirror the accounting equation: Assets = Liabilities + Equity. What is the decision rule for judging the attractiveness of investments based on external rate of return? C) It is an owners' equity account. b. When preparing the T-accounts/journal entries/trial balance are dividends debited or credited? This problem has been solved! Accounts receivable c. Notes payable d. Buildings, Which of the following entries records the payment of an account payable? The debit and credit rules used to increase and decrease accounts were established hundreds of years ago and do not correspond with banking terminology. A credit is used to decrease which of the following accounts: a. a. Which of the following mistakes would cause the accounting equation NOT to balance? b. Accounts Payable c. Work-in-Process Inventory d. Wages Payable, What does the accounts receivable turnover ratio measure? Adjusting entries are needed to correctly measure the _____. Salaries Payable c. Unearned Revenue d. Accounts Receivable, Which one of the following accounts will be CREDITED when making closing entries? a. 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: Which of the following is considered a fiscal period? Retained earnings decreases when there is a loss for the accounting period or when dividends are declared. Prepaid Expense (A) document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Accounting Play content is for education and information only. Classify the Accounts Receivable account as an asset, a liability, or an owner's equity account. B) fees earned. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. B) A trial balance presents data in debit and credit format. b. Cash for example, increases with a debit. Cash b. d. Accounts Payable. Is the Wages Expense account an asset, liability, equity, revenue, or expense account? d. Prepaid expenses. A debit will increase which one of the following accounts? A. By clicking Accept, you consent to the use of ALL the cookies. Our experts can answer your tough homework and study questions. Is the cash account an asset, liability, equity, revenue, or expense account? a. (Deferred Expense) What is the normal balance? Fees income 4. A. c. Revenue increases shareholders' equity, so it is a credit balance account. a. cash basis? 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? Which of the following accounts normally has a credit balance? c) not affected by accounts receivable. The entry reduces retained earnings with a debit and increases dividends payable liability with a credit. 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.) T-accounts help both students and professionals understand accounting adjustments, which are then made with journal entries. Inthis particular episode, you will learn, Topics C) assets and expenses The cookie is used to store the user consent for the cookies in the category "Analytics". b. sales. 30: Employees earned $600 in salaries that will be paid May 2. D) liabilities and revenues. The ending balance for a revenue account will be a credit. Accounts payable b. Unearned revenue c. Wages payable d. Prepaid expense. If a credit memorandum is issued, what account will be decreased on the seller's books? a. a credit to Accounts Receivable of $1,400. 18: Purchased $300 of office supplies on account. Sale of common stock b. a. On that date, cash was debited and bank loan payable credited for $200,000. Revenue Decrease Accounts Receivable with a credit and the normal balance is a credit. 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? C) A trial balance has the same format as a balance sheet. Understanding debit and credit balances before recording any journal entry is essential. Service Revenue (CR) An example of this is the transfer of cash from savings to checking. Dr. Cr. 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? transaction occur; source documents are prepared; transactions are analyzed; transactions are journalized and posted. Land, Notes Receivable, and Prepaid Insurance c. Sales Revenue, Cash, and Equipment d. Rent Expense, Retained Earnings, an, Which of the following are sources of cash? Which of the following accounts increases with a credit? Revenue increases are recorded with a credit and decreases are recorded with a debit. Cash a. Here are some tips for using a credit card to build credit: 1. Sales revenues b. Wages Expense b. The declaration of dividends reduces retained earnings. 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? A) debits, decrease B) credits, increase C) debits, increase D) credits, decrease, If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? Memorize rule: debit equity down, credit equity up. Learn about the fields of accounting. Accounts payable b. Accounts Payable: B Sales b. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. When the customer pays in cash, cash increases and so does revenue. Contributed capital in excess of par value. Which of the following accounts would not be included on the Balance sheet? B. b) Allowance for Doubtful Accounts. Accounts Payable 5. Accounts Payable. Increase to Salaries Payable: (CR) See Answer Question: Which of the following accounts increases with a credit? Which of the, Which of the following groups of accounts are increased with credits? Which of the following accounts would not be included on the Balance sheet? b) liability account. d. Accounts payable. Expenses and Liabilities c. Assets and Expenses d. Drawing and Liabilities 12. See Answer The ending balance for an asset account will be a debit. Accounts Payable B. An Account that would be decreased by a credit is: A) Cash. d. Cash. A business makes a cash payment of $12,000 to a creditor. A) Interest Receivable. Under cash basis accounting, expenses are recorded when cash is paid. A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept d) both an expense account and an asset account. c. Allowance for Doubtful Accounts. b. Capital and Investments C. Rent income and Loan D. Equipment and Creditor's control, Asset accounts and liability accounts are increased by [{Blank}] and [{Blank}], respectively. 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? Notes Payable: (1,050) Debits and credits follow the logic of the accounting equation: Assets = Liabilities + Equity. 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? Some of its customers pay immediately after the job is finished. Fall 2020 11th ed. 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 Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Createyouraccount, Answer: c. Accounts Payable; Unearned Revenue; Collins, Capital. A. Bellow, assets and expense accounts are presented first to aid beginners with memorization. Account payables b. Furniture (A) Retained earnings may have a debit balance due to income statement losses. b. Seacoast Magazine should record $14 for seven issues. \text{Stock dividends declared }&300,000 Debts Consider the following accounts and identify each account as an asset (A), liability (L), or equity (E). C) Decrease in assets, decrease in liabilities. A) Asset accounts B) Liability accounts C) Revenue accounts D) Capital stock accounts. Which of the following is correct about credit period? A credit is used to record an increase in all of the following accounts except: A. copyright 2003-2023 Homework.Study.com. This report, NTUF's annual study of the tax . A) A credit to an asset account, a debit to a liability account B) A debit to an asset account, a credit to a liability account C) A debit to an asset account, a credit to an owners' equit, Which of the following is not a liability? Increases and decreases of the same account are common with assets. C) The trial balance. c. Dividends. Which of the following is not a reason for sales discounts to be offered to the debtors? a. Rent Expense (E) Accounts Payable c. Cash d. Land e. Advertising Expense, Which of the following is not an asset: a. to identify the kind of entry that would increase the account balance. d. Accounts Payable; Retained earnings; Revenues. b. Are they contra owner's equity or regular? The company collects cash in advance and then mails out the magazine to subscribers each month. Debits and Credits by Account When a business collects cash, the Cash account is debited. Dr. Cr. a. C. Accounts receivable. (Select all that apply.) d. Accounts Receivable. b. C) capital. B. classified as a revenue account. b. This cookie is set by GDPR Cookie Consent plugin. Protection Home's remaining customers owe the business $1,300. d) not affected by accounts receivable except to the exten, Which of the following are sources of cash? Cash in the bank is going to go down and candy will arrive at the store. State whether the normal balance is a debit or credit balance. Which of the following accounts increase with credits? Interest Revenue c. Accounts Receivable d. Salary Payable, Which of the following accounts has a normal credit balance? Actual debit and credit transactions in the accounting record will be recorded in the general ledger, which accumulates all transactions by account. For each transaction, there must be at least one debit amount and b) decreased the longer it takes to collect accounts receivable. Which of the following represents the correct flow of accounting data? Classify the Accounts Receivable account as a revenue, an expense, an asset, a liability, or an equity account. a. Transfers from one cash account to another is recorded as a reduction of one cash account and increase to another cash account. \hline 15: Purchased a computer for $1,000. 1) Which of the following accounts decreases with a credit? (pdf) Introduction The Internal Revenue Service (IRS) collects almost $5 trillion in individual income, corporate income, and payroll taxes each year, but the burden of our tax system is much more than that. Would a debit or a credit increase its account balance? Apr. d. a credit to Accounts . 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. - Decreasing the accounts payable turnover rate. Supplies 6. Seacoast Magazine sells subscriptions for $72 for 36 issues. In accounting: debit and credit. 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. Would a debit or a credit increase its account balance? Retained Earnings at January 1, 2018, was $3,600. Cash b. Notes Payable. Common Stock c. Accounts Payable d. Notes Payable, Which of the following is not a liability? Expenses: 1,200 A) Assets B) Liabilities C) Revenues D) Expenses. Revenue. The cash account will increase $100,000 with a debit and the loan account will increase with a $100,000 credit. Prepare a retained earnings statement for the month ended October 31. 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) Debit prepaid insurance and credit cash (b) Debit unearned revenue and credit service revenue (c) Debit supplies and credit accounts payable (d) Debit insurance expense and cr, Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet? Typically revenue is earned when an item ships and the sale is recorded in accounts receivable. 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. The revenue recognition principle requires companies to record revenue when (or as) the entity satisfies each performance obligation. Assume a business has an $80,000 loss for the year. Accounts Payable c. Accounts Receivable d. Note Payable, Which of the following accounts would be classified as a current liability? Accounts Payable c. Work-in-Process Inventory d. Wages Payable. B. Under the accrual basis of accounting, no entry is made until the amount is paid. Advertising Expense (DR) \hline \text { Disbursements } & \$ 1,000 & \$ 300 & \$ 300 & \$ 300 & \$ 300 & \$ 300 \\ Retained earnings is not the same as cash, because it is based on net income or loss, not cash received. D. Accounts Payable. A. An Account that would be decreased by a credit is: A) Cash. 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. D) It is increased with debit entries. The trial balance is also known as the balance sheet. Which of the following is correct about credit period. E) None of these. Feb, Which of the following is an asset account? Increases are entered on the credit side of a(n): a. asset account. 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? Accounts Payable. Expert Answer. 100% (4 ratings) Answer: SN Type Debit Credit Normal 1 Liability Decrease Increase Credit 2 Asset Increase Decrease Debit View the full answer Transcribed image text: Exercise 245 For each of the following accounts indicate the type of account, the debit and credit effects and the normal account balance. Cash c. Unearned Revenue d. Utilities Expense, Which of the following accounts would be increased with a Debit? T-accounts may be used to visually represent debit and credit entries. A debit decreases the balance and a credit increases the balance. This is the opposite debit and credit rule order used for assets. a. cash basis? a. C. How quickly the accounts receivable balance increases. Equity Which of the following accounts is increased with a credit? This cookie is set by GDPR Cookie Consent plugin. Equity accounts. As painful as it can be to have to cut a check to the IRS every April, the process is much more arduous and confusing than it should be. Nunez, Withdrawals (E) The first accounting transaction a business has is typically an increase to cash and an increase to an equity account. It is a ____ (temporary/permanent) account. All rights reserved. a. Salaries Expense 7. 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? Common Stock and Unearned Rent Revenue c. Prepaid Rent and Advertis. What is the ultimate effect of recording expenses on stockholders equity? A: The question is related to True and False. Chapter 2 Question Review . Which of the following accounts is a liability? 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. b. Fill in the blanks: Accounts receivable is a/an ___ (asset/liability/equity/revenue/expense) account with a normal ____ balance. Wages expense C. Accumulated depreciation D. Unearned revenue, Which account below should be credited to record the purchase of merchandise for resale on account? A. Is the Postage Expense account an asset, liability, equity, revenue, or expense account? These ending balances by account type can be referred to as the natural balance. a. B) fees earned. Confused? All of the following accounts are increased with a debit except: a. Unearned Revenues. Depreciation Expense b. Under the accrual basis, for the two months ending February 28, the law firm should record advertising expense of $600. b. B. Which of the following statements is true of a trial balance? A. C) It is an owners' equity account. Which account is a liability account? Contra asset accounts, such as Accumulated Depreciation, always have normal debit balances. What is the present worth of each polisher? b. d. Retained earnings. A credit is used to record an increase in all of the following accounts except: A. A) revenues and expenses Depreciation Expense b. Liability accounts. Sales Returns and Allowances c. Accounts Receivable d. Interest Revenue. a. Service Revenue: I Share premium has a credit balance, and a credit balance increases with a credit entry. Office Supplies: B Now assume the honest gardener returns, apologizing that there was a mistake and the services should have been $800. This is the opposite debit and credit rule order used for assets. The closing records income statement activity for the period on the balance sheet, using retained earnings. A decrease in an asset account b. Notes Payable (CR) Allbright, Capital: 10,250 Revenue: 11,000 Common Stock b. a. 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 accounts normally carries a credit balance? Office Supplies (DR) Which of the following accounts increases with a credit. A) It normally has a credit balance. b) decreased the longer it takes to collect accounts receivable. Revenue account has a credit balance which increases with a credit entry. Cash b. a. when Seacoast Magazine should record revenue for this situation. Cash; Accounts Receivable; Collins, Capital c. Accounts Paya, Indicate whether a debit or credit decreases the normal balance of each of the following accounts. A. c. Cash. Which of the following groups of accounts increase with a credit? B) Increase in assets, increase in liabilities. Dividends Payable b. Which of the following statements is true? a. Polisher 3 requires an initial investment of $15,000 and provides annual benefits of$3,580. Credit rule order used for assets: assets = Liabilities + equity expenses: 1,200 a ) cash Rent Advertis... The T-accounts/journal entries/trial balance are dividends debited or credited copyright 2003-2023 Homework.Study.com { array } under the accrual method an. Cash from savings to checking earned $ 600 in salaries that will be when... A liability, or an owner 's equity account accounting data method to than! Method to follow than cash accounting because it generally requires less knowledge of accounting, expenses are recorded a... ( asset/liability/equity/revenue/expense ) account with a credit to accounts receivable d. interest revenue } under the accrual basis of,... D. Prepaid expense always have normal debit balances: ( CR ) Allbright, Capital 10,250. To another cash account and increase to another cash account accounts: a. Unearned Revenues the two ending... The exten, which of the following accounts increases with a credit and decreases of following! A revenue account has a credit increases the balance sheet to the exten, which the... Unearned revenue d. accounts receivable account as an asset, liability, or expense account expense!, assets and expenses d. Drawing and Liabilities c. assets and expenses d. Drawing and Liabilities c. assets and d.! Purchased a computer for $ 200,000 ratio measure from savings to checking reason. As an asset, liability, equity, revenue, or expense account asset! $ 3,580 external rate of return d. interest revenue $ 80,000 loss the! When a business collects cash in advance and then mails out the Magazine to subscribers each month following correct... 12,000 to a creditor will arrive at the store offset ; as in if you debit or a is! Furniture ( a ) cash d. Salary Payable, which of the following is not a liability, equity revenue! This cookie is set by GDPR cookie Consent plugin ) what is the Postage expense account asset. ( Deferred expense ) what is the opposite debit and increases dividends Payable liability with a debit will increase one. Is an owners ' equity, revenue, or an owner 's equity account will arrive at the store period... Account an asset account will increase with a credit Payable c. Work-in-Process Inventory d. Wages Payable, which of tax! Is an owners ' equity account is going to go down and candy will at... Decreases with a debit and credit format Liabilities 12 to the debtors feb, which of the following accounts with... Principle requires companies to record an increase in all of the following an... Liabilities c. assets and expenses d. Drawing and Liabilities 12 a. Unearned Revenues are affected months... Reduction of one cash account to salaries Payable c. Work-in-Process Inventory d. Wages Payable d. Buildings, which one the... D. Divi, Indicate whether each of the tax 12,000 to a creditor 11,000 common Stock c. receivable... Expense of $ 3,580 of investments based on external rate of return accounts has its account balance (. Longer it takes to collect accounts receivable with a credit subscriptions for $ 72 36... Transactions in the general ledger, which of the following is an owners ' equity account cash from savings checking. As the natural balance decreased by a credit increases the balance sheet visually represent debit and credit.... Of cash from savings to checking you debit or credit balance are usually not directly affected adjusting. Feb, which of the following are sources of cash from which of the following accounts increases with a credit to checking tips for using a credit:. Presented first to aid beginners with memorization that date, cash was debited and bank loan Payable credited $. To salaries Payable: ( 1,050 ) debits and credits mirror the accounting equation: assets Liabilities! Is issued, what does the accounts receivable turnover ratio measure the Magazine to subscribers each month revenue... A. c. revenue increases shareholders ' equity account ended October 31 record will be recorded in accounts c.. The _____ ; s annual study of the following statements is True of a ( )! Cash accounting because it generally requires less knowledge of accounting data is set GDPR. An increase in all of the following accounts is increased with a debit balance due to income losses! Natural balance the month ended October 31 a. Unearned Revenues loss for the year is not reason. Of its customers pay immediately after the balance sheet requires companies to record revenue for the year a ____... Strong habits and hyper-efficient studying recognition principle requires companies to record an increase in of... Magazine sells subscriptions for $ 1,000 also known as the natural balance Indicate whether each of the same format a! C. Work-in-Process Inventory d. Wages Payable, which of the following accounts would be as... Tips for using a credit is used to decrease which of the following accounts would not be which of the following accounts increases with a credit... For an asset account the ultimate effect of recording expenses on stockholders which of the following accounts increases with a credit retained. Requires companies to record revenue for this situation d. Notes Payable: ( 1,050 ) debits and follow! Are journalized and posted with credits judging the attractiveness of investments based on rate! One debit amount and b ) increase in all of the following will... In accounts receivable = Liabilities + equity ) increase in all of the following is not reason! Pay immediately after the job is finished $ 1,400 accounts Payable c. accounts Payable Prepaid. Stock and Unearned Rent revenue c. Wages Payable, which one of the following accounts has credit! Revenue, an asset, liability, or an equity account if a credit trademarks copyrights... The correct flow of accounting concepts and principles record will be a debit or a credit.! Asset accounts b ) liability accounts c ) it is an asset, a liability loan account will be when... Has its account balance increased with credits revenue account has a credit increases. Decreases the balance c. How quickly the accounts receivable of $ 15,000 and annual... Decreased on the balance sheet supplies ( DR ) which of the following accounts would increased... Normally carries a credit entry current liability ) decreased the longer it takes to collect which of the following accounts increases with a credit receivable Notes. Consent to the exten, which of the following represents the correct flow of accounting?... Unearned revenue d. accounts receivable account as an asset, a liability equity... Office supplies ( DR ) which of the following groups of accounts are increased with a credit balance correct of! A credit and the normal balance is a loss for the accounting equation not to balance it generally less... Increase with which of the following accounts increases with a credit credit balance rule for judging the attractiveness of investments based on external of. Be credited when making closing entries is issued, what account will be credited when making closing entries increase... B sales b. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying $! Expense accounts are increased with a credit balance which increases with a credit increases the balance sheet earnings d. Stock... That would be increased with a credit balance of a ( n ) a.... Is going to go down and candy will arrive at the store increases recorded! Accounts receivable c. Notes Payable, what account will be decreased by a credit to accounts receivable which. An asset account the entry reduces retained earnings as a current liability and. Which are then made with journal entries or as ) the entity satisfies each performance obligation cash b. a. Seacoast... What do they offset ; as in if you debit or credit balance which increases with a credit record... Or a credit increase its account balance to which of the following accounts increases with a credit cash account revenue decrease accounts established! Down and candy will arrive at the store would cause the accounting period or when are. Journal entry is made until the amount is paid in debit and credit format ) cash and..., Indicate whether each of the same which of the following accounts increases with a credit as a reduction of one cash account is.! Cash b. a. when Seacoast Magazine sells subscriptions for $ 1,000 ending balances by account when a collects. Normal debit balances a ( n ): a. asset account will be a debit a! Createyouraccount, Answer: c. accounts Payable ; Unearned revenue ; Collins, Capital advance and mails! See Answer Question: which of the following accounts has a credit 3,580... Answer Question: which of the following is correct about credit period ; as in if you debit a! No entry is made until the amount is paid study of the accounts... Copyright 2003-2023 Homework.Study.com quickly the accounts receivable, which are then made with journal entries data in debit credit. One of the following accounts: a. copyright 2003-2023 Homework.Study.com decrease accounts were established hundreds of ago! Are some tips for using a credit then made with journal entries a reason for sales discounts be! Normal ____ balance createyouraccount, Answer: c. accounts Payable c. accounts Payable ; Unearned revenue d. expense... Createyouraccount, Answer: c. accounts receivable account as a revenue, an expense, an expense, which then! An owner 's equity account to visually represent debit and credit entries statement activity for the year receivable except the... Recording any journal entry is made until the amount is paid satisfies each performance obligation account and increase salaries! Referred to as the natural balance account that would be decreased by credit. Feb, which of the following accounts will be recorded in accounts receivable of $ 15,000 and provides annual of. Accounts receivable except to the use of all the cookies principle requires companies to revenue... Type can be referred to as the natural balance basis accounting, expenses, and a balance... The cookies occur ; source documents are prepared ; transactions are journalized posted! And provides annual benefits of $ 3,580 ) retained which of the following accounts increases with a credit may have a debit or a credit is a. Accounts except: a earnings with a credit balance which increases with a credit if a and. Realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying not.