Explain why revenues are recorded as credits and expenses as debits.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

See More Books

Question Posted: Dec 12, 2011 07:26 AM

See More Questions

Explain why revenues are recorded as increases to retained earnings in the template system.
Are debits or credits typically listed first in general journal entries? Are the debits or the credits indented?
1) To close a partners drawings account, an entry must be made that: Select one: a. No entry b. credits that partners drawings account and debit that partners capital account c. debits that partners...
Recall the heat equation which we solved numerically T= = DTxx There we implemented an explicit numerical scheme (FTCS) which led to a conditionally stable solution - meaning that for certain time...
Gismondi Produce Company's trial balance below pertains to December 31, 2017. Gismondi Produce Company uses the perpetual inventory system. Additional data at December 31, 2017: a. Insurance expense...
Describe inside information as applied to the trading of stocks. Why is it illegal to trade based on inside information? Describe the evidence that suggests some investors use inside information.
When a charge-separating process or device is used to charge a pair of objects, how are their charges related?
Swisher Company issued $2,000,000 of bonds on January 1, 2017. Instructions (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, and (3) 103. (b)...
18. The atomic number of elements P, Q, R and T are 19,17, 14 and 6 respectively. The pair of elements that can react to form an ionic compound is A. Q and T B. R and Q C. Q and P D. R and T 19. The...
Your mum is an avid whale watcher and she is concerned about her blubbery friends. As a first year Mathematical Modelling student, you tell her that you got this! You consider the problem of the...
Explain why stockholders equity is increased by revenues and decreased by expenses.
Complete the following matrix by entering either debit or credit in eachcell: Item Increase Decrease Revenues Losses Gains Expenses
True or False Windows, Linux, Android, iOS, and macOS are all examples of application software
Write a letter to Grandma telling her about drug resistance in living organisms. Explain to her why drug resistance is such a common phenomenonincluding why insects become more resistant to...
When you catch a water balloon, its best to start with your hand in motion, moving with the balloon, and then gradually slow it to rest. Why is this approach desirable?
Explain how the fossil whales that have been discovered support Darwins theory of evolution.
True or False: if the real minimum attractive rate of return is 8%, inflation is 4%, the tax rate is 40%, and money can be borrowed at 16% annual compound interest, then the loan should be repaid...
How did the mitochondria and chloroplasts of eukaryotic cells originate?
A conflict is most likely to be functional and have a positive impact on performance when it is ____________. (a) based on emotions (b) resolved by arbitration (c) caused by resource scarcities (d)...
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
If the price change in houses parallels the CPI (see Table 2 in Example 10), what would a house valued at $200,000 in 2016 be valued at (to the nearest dollar) in 1960? Table 2 Table 2 CPI (1982-1984...
Aircard Corporation tracks the number of units purchased and sold throughout each accounting period, but applies its inventory costing method at the end of each period as if it uses a periodic...
Assume you recently obtained a job with Perfume Passion, the largest specialty retailer of discounted fragrances in Canada. Your job is to estimate the amount of write-down required to value...
Peterson Furniture Designs is preparing its annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Required: 1....
Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses 2024 $ 942 798 Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% $...
Halifax Manufacturing allows its customers to return merchandise for any reason and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of...
1. Durango Mountain Bike Tours' ending cash balance as of December 31, 2020 was $10,000. Its expected cash collections and payments for the next six months are given in the following table. Month...

Explain why revenues are recorded as credits and expenses as debits.

Question:

Step by Step Answer:

Revenues increase stockholders equity and expenses d...View the full answer

Financial Accounting

Students also viewed these Accounting questions