Question
In: Accounting
Which of the following statements about a journal entry is false? An increase in an asset...
Which of the following statements about a journal entry is false?
An increase in an asset account is compatible with an increase in a liability account.
An increase in an asset account is compatible with a decrease in an asset account.
An increase in a liability account is compatible with an increase in retained earnings.
A decrease in an asset account is compatible with a decrease in owners' equity.
Solutions
Expert Solution
| In a journal entry one account is debited and other account is credited. | |||||||||
| WE need to keep in mind accounting equation Assets= Liabilities + equity | |||||||||
| so if there is increase in asset than there needs to be increase in liabilities or equity with equal amount | |||||||||
| so if there is decrease in asset than there needs to be decrease in liabilities or equity with equal amount | |||||||||
| Also if there is increase in asset and at the same time decraese in asset so this makes the effect nil and | |||||||||
| there is no effect on liability section. Sames goes for liability and equity holder section. | |||||||||
| So option a,b and d goes with the above explantions and those are correct/true | |||||||||
| Answer | |||||||||
| Option c An increase in a liability account is compatible with an increase in retained earnings. | is false | ||||||||
| But if there is increase in liabilities side than there should be either increase in asset side, or decrease in liability side | |||||||||
| or decrease in stockholder equity that only accounting equation will match and there would be correct debit and credit in journal | |||||||||
| entry. Hence Statement C is false there cant be increase in liability account with an incraese in retained earnings | |||||||||
| If any doubt please comment |
ekkarill92 answered 2 years agoRelated Solutions
Which of the following statements about receptor potentials is FALSE?
Which of the following statements about receptor potentials is FALSE?
A. They are changes in the resting membrane potential of a sensory cell in response to a stimulus.
B. The receptor potential spreads from the cell body of a sensory cell to the axon hillock, where action potentials can be generated
C. One receptor potential always prompts the release of a neurotransmitter that induces an associated neuron to generate an action potential.
D. They must be converted into action potentials...
Which of the following statements about the nuclear envelope is FALSE?
Which of the following statements about the nuclear envelope is FALSE?
A. It is composed of two membranes (a double membrane)
B. Unlike other membranes in the cell, it primarily consists of complex polysacchrides such as cellulose
C. It is supported by a cytoskeletal network known as nuclear lamina
D. It contains pores for the passage of large molecules
E. It contains the chromosomal DNA of eukaryotic cells
Which of the following statements about codes of conduct is false? -They are formal statements of...
Which of the following statements about codes of conduct is
false?
-They are formal statements of what an organization expects of
its employees.
-They guarantee an ethical business climate.
-They help employees determine what behaviors are
acceptable.
-They provide rules and guidelines for employees to follow.
-They should be specific enough to be reasonably capable of
preventing misconduct.
____________________________________________________________________________________________________
While ideally the board of directors financial audit committee
conducts ethics audits, in most firms they are conducted
by:
-managers or...
Which of the following statements is false? A Put options increase in value as the stock...
Which of the following statements is false?
A
Put options increase in value as the stock price falls.
B
If two call options have different strike prices but are
otherwise identical, the call option with the higher strike price
has a lower value than the call option with a lower strike
price.
C
A put option cannot be worth more than its strike price.
D
An American option with an earlier exercise date cannot be worth
more than an otherwise...
Which of the following statements about perfect price discrimination is false?
Which of the following statements about perfect price
discrimination is false?A condition for perfect price discrimination is that it must be
costlier to service some customers than others.There is no consumer surplus if a firm engages in perfect price
discrimination.For the price-discriminating firm, its marginal revenue curve
coincides with its demand curve.Perfect price discrimination occurs when the seller charges the
highest price each consumer would be willing to pay for the
product.
Decide which of the following statements are True and which are False about equilibrium systems: If...
Decide which of the following statements are True and which are
False about equilibrium systems:
If K = 8 for the reaction A + B ⇌ C + D, K will equal -8 for the
reaction C + D ⇌ A + B
For a reaction with K >> 1, the rate of the forward
reaction is less than the rate of the reverse reaction at
equilibrium.
The value of K at constant temperature does not depend on the
amounts...
Decide which of the following statements are True and which are False about equilibrium systems: The...
Decide which of the following statements are True and which
are False about equilibrium systems:
The value of K at constant temperature depends on the amounts
of reactants and products that are mixed together initially.
For a reaction with K >> 1, the rate of the forward
reaction is less than the rate of the reverse reaction at
equilibrium.
A large value of K means the equilibrium position lies far to
the left.
For the following reaction: CaCO3(s) ⇌ CaO(s)...
Which of the following statements is FALSE?
Which of the following statements is FALSE? meiosis creates genetic diversity in sexually reproducing organisms gametes are haploid cells produced by meiosis mitosis produces four genetically identical daughter cells somatic cells are diploid cells produced by mitosis
Which of the following statements is FALSE?
Which of the following statements is FALSE?a. The rate of second order reactions is dependent on
concentration.b. The rate of a first order reaction is dependent on
concentraion.c. The half life of a second order reaction is not dependent on
concentration.d. The half life of a zero order reaction is dependent on
concentration.e. None of the statements are FALSE.
Which of the following statements is false?
Which of the following statements is false? a. A discouraged worker is not counted as an unemployed worker b. The frictional unemployment rate is greater than the natural unemployment rate. c. The natural unemployment rate is greater than the structural unemployment rate d. The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A labor market has 50,000 people in the labor force. Each month, a fraction p of...
- A road with a radius of 72 m is banked so that a car can navigate...
- 1) If you had not dried the solid, would the calculated percent yield have been higher,...
- Two structures of alanine can be drawn that have a net charge of zero, but the...
- Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption...
- Matlab Programming Write an M-file to read a real-valued vector of any length from the keyboard...
- TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly...
ADVERTISEMENT