Principles of Accounting Chapter 2

20 June 2024
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question
1. Asset accounts and liability accounts are increased by __________ and __________, respectively.
answer
debits; credits
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Revenue accounts and expense accounts are increased by __________ and __________, respectively.
answer
credits; debits
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Purchasing supplies on account __________ a(n) __________ account
answer
increases; liability
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4. On December 15, Zapp Company paid $1,900 to Sylvan Supply Co. on account. The journal entry to record this transaction would include a __________ to __________.
answer
credit; Cash
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1. Which of the following accounts is NOT an asset account?
answer
Cash (Accounts Payable) Building Equipment **Accounts Payable is NOT an asset.
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Which of the following accounts is a liability account?
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1) Notes Payable 2) Accounts Payable 3) Wages Payable ** ALL 3 of them**
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Increases in stockholders' equity as a result of selling services or products to customers are known as
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revenues.
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The process of transferring the debits and credits from the journal entries to the accounts in the ledger is called
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posting
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On March 15, Civic Company paid its employees for two weeks' wages. This transaction will have which of the following impacts on the accounting equation?
answer
Assets will decrease and stockholders' equity will increase
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On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction would include
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a debit to cash
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On May 21, Civic Company paid dividends of $1,000 to the shareholders. The journal entry to record this transaction would include a debit to
answer
dividends