Question

Question 1 0.5 pts The credit side of an account is the left side of the account O depends on whether the account is an asset. liability or stockholders' equity can be either side of the account depending on how the accountant set up the system is the right side of the account Question 2 0.5 pts The stockholders' equity will be increased by which of the following. revenues none of the above dividends expenses Question 3 0.5 pts @ 21 otv A MacBook Air BO F3 000 doo 44 54 w $ A % 5 & 7 3 6 B 0 9 o W E R T P Y T U V

Answer 1

Answer :

1.

Correct answer is option d = is the right side of the account.

Reason:

All the ledger accounts whether they are asset ,liabilities ,equity, income or expense , have a debit side and a credit side .

the left side of the ledger account is the debit side ,

and the right side of the ledger account is credit side .

see the below format.

Format of any ledger account :

Date	Debit side	amount debit	date	credit side	amount credit

Thus option d is the correct answer.

2.

Correct answer is option a = revenues

Reason:

Revenues increase the profit and profit is transferred to retained earnings after payment of dividends,

And retained earnings ultimately added in shareholders equity, and thus increases the equity.

whereas expenses decreases the profit and this decreases the shareholders equity.

Dividend are payments of share in profits to shareholders.

Which are deducted from the profits and the balance is added in shareholders equity as retained earnings.

3.

Correct answer is option d= asset , debit.

Reason

When sales are made on credit to the customers ,Such sales are shown as account receivables.

Account receivables are Assets of business until the cash is received from customers .

and assets always have a Debit balance .

This option d is correct.

4.

Correct answer is option b = journal.

Reason:

Any business transaction is first recorded as a journal entry,

then all accounts are posted in their subsequent ledgers ,

and the balances of all ledger accounts are then transferred to trial balance .

Thus option b is the correct answer.

5.

Correct answer is option a = cash 200

Reason:

When goods are purchased on credit, the supplier becomes the creditor .

the following entry is passed at time of purchase:

Purchases account debit

account payables credit

And at the time when cash payment is made to the creditor,

the following entry will be passed :

account payables debit

cash account credit

So when creditor is paid $200 for the amount due,

Cash will be credited with $200.

6.

Correct answer is option a = supplies 750.

Reason:

When supplies are purchased on account, following entry is passed.

Supplies account debit $ 750

Accounts payable credit $ 750

Thus option a is correct option.

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