liability accounts should only be debited and never credited true or false

Question

Question

Answer 1

Answer #1

Liability account normally has a credit balance and when liability is paid, there is a debit to decrease the liability account.

Normal balance of a liability = Credit

Increase in liability = Credit

Decrease in liability = Debit

False

Add a comment

Answer 2

Similar Homework Help Questions

True or False 48) The purchase of an asset, such as office equipment for of an...

True or False 48) The purchase of an asset, such as office equipment for of an asset, such as office equipment, for cash will cause owners equity to decrease. 49) Liability accounts should only be debited and never credited. 49) 50) The Cash account is usually affected by adjusting entries.
For each transaction, indicate the account or accounts that should be debited and credited. Accounts 1....

For each transaction, indicate the account or accounts that should be debited and credited. Accounts 1. Cash 2. Accounts Receivables 3. Prepaid Insurance 4. Office Supplies 5. Automobiles 6. Land 7. Accounts Payable 8. Income Taxes Payable 9. Notes Payable 10. Capital Stock 11. Retained Earnings 12. Service Revenue 13. Wage and Salary Expense 14. Utilities Expense 15. Income Tax Expense Transactions Debited Credited Example: Purchased office supplies for cash 4 1 a. Issued capital stock for cash. __ __...
In a merchandising company, the only accounts credited during the closing process are expense accounts. True...

In a merchandising company, the only accounts credited during the closing process are expense accounts. True False

15-6 True or False Study Appendix 15B. Use T or F to indicate whether each of...

15-6 True or False Study Appendix 15B. Use T or F to indicate whether each of the following statements is true or false. For each false statement, explain why it is false. 1. Purchase of inventory on account should be credited to Inventory and debited to Accounts Payable. 2. Increases in asset accounts must always be entered on the right. 3. Increases in stockholders' equity should always be entered as credits. 4. Decreases in liability accounts should be recorded on...
15-6 True or False Study Appendix 15B. Use T or F to indicate whether each of...

15-6 True or False Study Appendix 15B. Use T or F to indicate whether each of the following statements is true or false. For each false statement, explain why it is false. 1. Purchase of inventory on account should be credited to Inventory and debited to Accounts Payable. 2. Increases in asset accounts must always be entered on the right. 3. Increases in stockholders' equity should always be entered as credits. 4. Decreases in liability accounts should be recorded on...
True or False: Contracts can never be the basis of professional liability to a patient

True or False: Contracts can never be the basis of professional liability to a patient

U Labor and Indirect Labor are debited and D) Work in Process Inventory and Factory credited....

U Labor and Indirect Labor are debited and D) Work in Process Inventory and Factory credited. ) Cost of Goods Manufactured is debited and Direct Labor is credited. TUESS Inventory is credited. Cory is debited and Factory Overhead is credited. direct Labor are debited and Factory Wages Payable is credited. iventory and Factory Overhead are debited and Factory Wages Payable is 34) In a process costing system, the purch Inventory a process costing system, the purchase of raw materials is...
True or False: A liability should be classified on the balance sheet as a "current liability...

True or False: A liability should be classified on the balance sheet as a "current liability when the company expects to decrease or satisfy the liability within one year or the operating cycle, whichever is longer. Select one: True False
3. Name the accounts debited and credited for each of the following transactions. (a) Billing a...

3. Name the accounts debited and credited for each of the following transactions. (a) Billing a customer for work done. (b) Receipt of cash from customer on account. (c) Purchase of office supplies on account. (d) Purchase of 15 gallons of gasoline for the delivery truck.

A Limited Liability Company (LLC) can be formed with only 1 member. True False QUESTION 11...

A Limited Liability Company (LLC) can be formed with only 1 member. True False QUESTION 11 The type of liability where every party is only liable for their pro-rata share of the indemnity is called: O Joint Liability Several Liability Joint and Several Liability All of the above QUESTION 12 The Financing form where a company sells the Accounts Receivable due from its customers is called: Account Receivable Credit Line Factoring Asset Backed Loan SBA Loan Indemnity is a sum...