If assets are valuable resources and asset accounts have debit balances, why do expense accounts also...
If assets are valuable resources and asset accounts have debit balances, why do expense accounts also have debit balances? What is the difference between an asset and an expense?
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Thus
,Due to this both are debited.
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If assets are valuable resources and asset accounts have debit
balances, why do expense accounts also...
The normal balance in an asset account is a debit. It's also the normal balance for...
The normal balance in an asset account is a debit. It's also the normal balance for an expense account. The normal balance for a liability and owner's equity accounts is a credit. Credit is the normal balance for revenues as well. This seems odd. Assets (economic resources) & expenses (outflows incurred to generate revenues) have the same normal balance and so do liabilities (amounts owed or creditor claims)and revenues (increases in equity from business transactions). It seems contradictory. Why is...
Using the following information, prepare a trial balance. Assume all asset, dividend, and expense accounts have...
Using the following information, prepare a trial balance. Assume all asset, dividend, and expense accounts have debit balances and all liability, stockholders' equity, and revenue accounts have credit balances. List the accounts in the following order: assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Cash Salaries Payable Prepaid Rent Accounts Payable Retained Earnings Salaries Expense $6,050 600 800 1,950 1,750 2,900 Dividends Rent Expense Accounts Receivable Common Stock Service Revenue Advertising Expense $ 400 1,950 4,300 6,100 7,000 1,000 Trial...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
Question 2 Fill in the blank with the best choice below: Asset, dividend, and expense accounts...
Question 2 Fill in the blank with the best choice below: Asset, dividend, and expense accounts have normal credit balances prepaid revenues О О О О О contra account balances unearned revenues normal debit balances
Identify the accounts that would normally have balances in the debit column of a business's trial...
Identify the accounts that would normally have balances in the debit column of a business's trial balance. Multiple Choice Revenues and expenses. Assets and revenues. Liabilities and dividends. Liabilities and expenses. Assets and expenses.
Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders' equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit.
Normal Balances of Accounts Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders' equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit.
Which of the following correctly identifies normal balances of accounts? Assets Debit Credit Credit Liabilities Common...
Which of the following correctly identifies normal balances of accounts? Assets Debit Credit Credit Liabilities Common Stock Revenues Expenses Credit Credit Debit Assets Liabilities Common Stock Revenues Expenses Credit Credit Credit Debit Assets Credit Debit Debit Liabilities Common Stock Revenues Expenses Credit Debit Debit Credit Assets Liabilities Common Stock Revenues Expenses Credit Debit Credit
Normal Balances of Accounts Identity each of the following accounts of Dispatch Services Co. as asset,...
Normal Balances of Accounts Identity each of the following accounts of Dispatch Services Co. as asset, ability owner's equites revenue Type of Account Liability Debitor Credit Credit Expense X Debit a Accounts Payable Accounts Recenoble a Ashley Ghan, Capital e Ashley in Drawing Expense X Credit Revenue X Debat Asset Debit Fees Eamed Owner's equity X Credit Office Equipment Liability X Debit Debit Liability Debit Revenue X Debit ssignment/take Assignment Main.dolinvoker&takeAssignmentSessionLocator=&inprogress. W e Entries into T accounts and Trial Balance...
Identify the following accounts of Advanced Services Co. as asset, liability, owner’s equity, revenue, or expense,...
Identify the following accounts of Advanced Services Co. as asset, liability, owner’s equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit. Wages Expense a) Assets b) liability c) Owner's equity d) Revenue e) Expense f) debit g) Credit
Why are the balances of Bad Debts Expense and Allowance for Doubtful Accounts virtually never equal?
Why are the balances of Bad Debts Expense and Allowance for Doubtful Accounts virtually never equal?
The normal balance in an asset account is a debit. It's also the normal balance for an expense account. The normal balance for a liability and owner's equity accounts is a credit. Credit is the normal balance for revenues as well. This seems odd. Assets (economic resources) & expenses (outflows incurred to generate revenues) have the same normal balance and so do liabilities (amounts owed or creditor claims)and revenues (increases in equity from business transactions). It seems contradictory. Why is...
Using the following information, prepare a trial balance. Assume all asset, dividend, and expense accounts have debit balances and all liability, stockholders' equity, and revenue accounts have credit balances. List the accounts in the following order: assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Cash Salaries Payable Prepaid Rent Accounts Payable Retained Earnings Salaries Expense $6,050 600 800 1,950 1,750 2,900 Dividends Rent Expense Accounts Receivable Common Stock Service Revenue Advertising Expense $ 400 1,950 4,300 6,100 7,000 1,000 Trial...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
Question 2 Fill in the blank with the best choice below: Asset, dividend, and expense accounts have normal credit balances prepaid revenues О О О О О contra account balances unearned revenues normal debit balances
Which of the following correctly identifies normal balances of accounts? Assets Debit Credit Credit Liabilities Common Stock Revenues Expenses Credit Credit Debit Assets Liabilities Common Stock Revenues Expenses Credit Credit Credit Debit Assets Credit Debit Debit Liabilities Common Stock Revenues Expenses Credit Debit Debit Credit Assets Liabilities Common Stock Revenues Expenses Credit Debit Credit
Normal Balances of Accounts Identity each of the following accounts of Dispatch Services Co. as asset, ability owner's equites revenue Type of Account Liability Debitor Credit Credit Expense X Debit a Accounts Payable Accounts Recenoble a Ashley Ghan, Capital e Ashley in Drawing Expense X Credit Revenue X Debat Asset Debit Fees Eamed Owner's equity X Credit Office Equipment Liability X Debit Debit Liability Debit Revenue X Debit ssignment/take Assignment Main.dolinvoker&takeAssignmentSessionLocator=&inprogress. W e Entries into T accounts and Trial Balance...
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