Debit and credit can be understood to mean "increase" and also "decrease," respectively, regardless of the account. True or False.

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Revenue rises stockholders" equity and also should be taped whenever cash is got from customers. True or False.
The cost recognition (matching) principle requires that initiative be related to accomplishment. True or False.
When a firm receives a utility bill however will not pay it appropriate away, the should:A. Make no entry till the invoice is paid.B. Debit Utilities Expense and also credit account Receivable.C. Debit Utilities Expense and also credit accounts Payable.D. Debit accounts Payable and credit Utilities Expense.
Which accounts generally have credit transaction balances?A. Revenues, liabilities, and also dividends.B. Revenues, liabilities, and also assets.C. Revenues, liabilities, and retained earnings.D. Revenues, liabilities, and expenses.
Otto"s Tune-Up Shop adheres to the revenue acknowledgment principle. Otto completes business on a customer"s car on respectable 31. The customer picks up the vehicle on September 1 and also mails the payment to otto on September 5. Rose oil receives the examine in the letter on September 6. When need to Otto display that the revenue to be earned?A. August 31B. September 5C. September 6D. September 1
Using accrual accounting, costs are recorded and reported only:A. Once they are incurred even if it is or no cash is paid.B. As soon as they are incurred and paid in ~ the exact same time.C. If they are paid prior to they space incurred.D. If they are paid ~ they are incurred.
On July 1 the Fisher Shoe save paid $15,000 come Acme Realty because that 6 month rent beginning July 1. Prepaid Rent to be debited for the fully amount. If jae won statements are ready on July 31, the adjusting make by the Fisher Shoe store on that day would be.A. Debit Rent expense $12,500; credit Prepaid Rent, $12,500.B. Debit rental Expense, $15,000; credit Prepaid Rent, $2,500.C. Debit Prepaid Rent, $2,500; credit transaction Rent Expense, $2,500.D. Debit rental Expense, $2,500; credit transaction Prepaid Rent, $2,500.

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Nordstrom purchased pair of shoes on credit for $50 and resold castle a week later for $80 to a customer utilizing a Nordstrom credit card. "Net income" indigenous this transaction under the cash communication equals.A. $50B. $80C. $0D.$30
Under a periodic inventory system, the price of goods sold is figured out each time a revenue occurs. True or False.
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