1. In addition to requiring that the accounting equation remain in balance, the double-entry system also...

1. In addition to requiring that the accounting equation remain in balance, the double-entry system also requires that:

the number of asset accounts must equal the number of liability and stockholder's equity accounts.

for any transaction, only two accounts are affected.

for any transaction, both sides of the accounting equation are affected.

the total dollar amount of debits must equal the total dollar amount of credits.

2.Which of the following would eventually cause Retained Earnings to decrease?

Receiving contributions from investors

Earning unearned revenue

Billing customers for services provided

Using up supplies

Expert Solution

ekkarill92 answered 1 year ago

The double-entry system of record keeping ensures that all accounts remain in balance. It does not...

The double-entry system of record keeping ensures that all accounts remain in balance. It does not ensure that the records are free from errors, but does represent the fact that if there is an increase or decrease in one account there will be equal decrease or increase in another account. Explain why having equal debits and credits in every journal entry is so important.

Explain the concept of double entry system and its relationship with accounting equation? kindly I need...

Explain the concept of double entry system and its relationship with accounting equation? kindly I need the answer written not as a picture.

What is Accounting equation? assets =liability +equity (please link to double entry)

T or F – Accounting uses a double entry system? 2. T or F – Assets...

T or F – Accounting uses a double entry system? 2. T or F – Assets = Liabilities + Owners Equity? 3. T or F – Assets – Liabilities = Owners Equity? 4. T or F – Assets are normally on the debit side of the T account? 5. Advantages of ERP systems include: A) saves money B) helps adjust to changes C) replaces separate software systems D) all of the above ) T or F – Accounts receivable are...

Review the related examples in the chapter, prepare a journal entry, balance the accounting equation, and...

Review the related examples in the chapter, prepare a journal entry, balance the accounting equation, and prepare all the affected "T accounts" for the following accounting transaction: a. On 12/08/2017, Toy Box Company purchased one thousand baseball bats that cost $3,000 on account and paid $30 cash to USPS for delivery charge (assume a perpetual inventory system is used). b. Toy Box Company sold 10 baseball bats for $20 to KidsCo on account on 12/10/2017. c. The auditor found that...

Show the following transactions that should be recorded in U.S. BoP using double-entry accounting system: A.)...

Show the following transactions that should be recorded in U.S. BoP using double-entry accounting system: A.) Newmont Mining—a U.S. mining concern—exports $400 million worth of copper to China and is paid in the form of a payment drawn on a U.S. bank B.) Dupont expands its plastics manufacturing capacity in its Polish plant by investing $250 million financed by a dollar bond issue in London (United Kingdom C.) The U.S. government provides food assistance to Sudanese refugees in the amount...

We know that the double-entry system of accounting means that every transaction has at least two...

We know that the double-entry system of accounting means that every transaction has at least two effects on the accounting equation. Can you give one example of each of the transactions that are mentioned below? -(1) One asset goes up and another asset goes down. -(2) An asset and a liability both go up. -(3) One liability goes up and another liability goes down. -(4) An asset goes up and the equity goes up to.

Explain a transaction-based accounting system requiring accrual accounting.

1) What is the principle of double entry accounting? Provide an example that would illustrate this...

1) What is the principle of double entry accounting? Provide an example that would illustrate this principle. (100–120 words) 2) Explain what a general journal is; describe the process of entering a correcting entry then explain the general principles for reconciling balances outstanding and how would you enter something from the statement that decreases the bank balance. (100–160 words)

What are general accepted accounting principles? How is the double entry system used? What do debit...

What are general accepted accounting principles? How is the double entry system used? What do debit and credit mean? What is a bond and how do investors decide how much to pay for a bond? What are the four basic financial statements and what is the purpose of each?

Question