Question 1

Which of the following accounts is decreased by a debit entry?

Accepted Answer

A)  Unearned revenue 
B)  Prepaid insurance 
C)  Cash 
D)  Insurance expense 
A)  Unearned revenue 
B)  Prepaid insurance 
C)  Cash 
D)  Insurance expense

Question 2

Services are provided to customers who paid immediately. What effect does this transaction have on the accounting equation?

Accepted Answer

A)  Assets and liabilities increase 
B)  Assets and retained earnings increase 
C)  Liabilities increase and retained earnings decreases 
D)  Assets and liabilities decrease 
A)  Assets and liabilities increase 
B)  Assets and retained earnings increase 
C)  Liabilities increase and retained earnings decreases 
D)  Assets and liabilities decrease

Which of the following accounts is decreased by a debit entry?

Services are provided to customers who paid immediately. What effect does this transaction have on the accounting equation?

Financial Accounting

Corporate Financial Statements

Accrual Accounting and Adjusting Entries

Internal Control and Cash

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Recording Accounting Transactions

Which of the following accounts is decreased by a debit entry?

Services are provided to customers who paid immediately. What effect does this transaction have on the accounting equation?

Financial Accounting

Corporate Financial Statements

Accrual Accounting and Adjusting Entries

Internal Control and Cash

Receivables

Inventory

Fixed Assets and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Filters