How is the balance of T-account determined? Must it always be on the increase side of...

How is the balance of T-account determined? Must it always be on the increase side of the account? Explain in 100-150 words

Expert Solution

The T Account is one of the methods of representing the Account. The left hand side of the T Account is always debit and the right hand side of the T account is always credit. Debit and credit in different scenarios may imply different impacts on the balance of the accounts. The debit for an asset account implies increase and credit in an asset account is decrease in the balance of that account. Whereas in case of liabilities a debit implies decrease and a credit implies increase. The 'T' shaped accounts are balanced at regular intervals and the time period for balancing depends upon the practice of the organization, say daily, weekly and monthly. When balancing, usually we add all the line items on a particular side for both the sides and we will see which side has more amount. The side with more amount is said to be the balance side of the account and the difference between the amounts is said to be the balance of the account. So the balance of a T-Account is always determined depending on the increase side of the account.

ekkarill92 answered 1 year ago

An account balance is A. the total of the credit side of the account B. the...

An account balance is A. the total of the credit side of the account B. the total of the debit side of the account C. the difference between the increases (including the beginning balance) and decreases recorded in the account D. the same as the balance sheet equation E. not used in the real world

An account balance is: a.The total of the credit side of the account. b. The total...

An account balance is: a.The total of the credit side of the account. b. The total of the debit side of the account. c. The difference between the total debits and total credits for an account including the beginning balance. d. Assets = liabilities + equity. e. Always a credit. 2. debit is used to record which of the following: a. A decrease in an asset account. b. A decrease in an expense account. c. An increase in a revenue...

How many years will it take for the balance left in a savings account to increase...

How many years will it take for the balance left in a savings account to increase from 2 of 2 $1,000 to $1,500 if interest is received at a nominal rate of 6% compounded semiannually throughout the period?

1. Identify the normal balance of the account and the side on which it increases and...

1. Identify the normal balance of the account and the side on which it increases and decreases for the Liability Account. 2. Develop two transactions for the Liability Account, one that results in an increase to the account group and one that results in a decrease to the account. For each transaction (increase/decrease) prepare the following information. a. Written description of the business transaction b. Explanation of an accounting principle or assumption that applies to the transaction. c. Journal entry...

1. The right side of a T-account is used to record Select one: a. Decrease in...

1. The right side of a T-account is used to record Select one: a. Decrease in revenue b. Increase in Asset c. Decrease in liability d. Increase in Liability 2. Odd-man Out. Choose the letter that does not belong to the group. Select one: a. Interest Income b. NSF check c. Notes Receivable collected by banks in behalf of the depositor d. Proceeds of bank loan deposited in the account of the depositor 3, Any retiring partner may do any...

The balance in an investment account years t after the account is opened is given by...

The balance in an investment account years t after the account is opened is given by 7500(1.065t). Compute the average rate of change for 2.5 ≤ t ≤ 3.5. (Round your answer to two decimal places.) Δ balance/ Δt=?

A(n) __ is a simplified balance sheet. asset account T - account bank account _ has...

A(n) ______ is a simplified balance sheet. asset account T - account bank account _____ has the key advantage that it is readily understood by the public and is highly transparent. The reserve rule Inflation targeting Prime rate targeting Discount rate targeting The interest rate the Fed charges other banks for loans is the ______ rate and the interest rate on over night loans from one bank to another bank is the ______ rate. federal funds; discount reverse repo; repo...

Calculate and enter the ending balance for each t-account. Post each transaction from the T-account into...

Calculate and enter the ending balance for each t-account. Post each transaction from the T-account into the ledger. Enter the transactions in chronological order. Explanations and posting references are not required. Then, calculate and enter the ending balance of each ledger account. Leave any unused cells blank. Trademark Dec. 1 33,700 29,000 Dec. 3 Dec. 2 6,700 13,200 Dec. 5 Dec. 4 26,800 6,900 Dec. 8 Dec. 6 13,400 1,300 Dec. 9 Dec. 7 31,300 19,500 Dec. 10 Bal. Bal....

Prepare a T-account for Petty Cash and post to the account. What is the balance of the Petty Cash account at all times?

Question Controlling petty cash Just Hangin’ Night Club maintains an imprest petty cash fund of $150, which is under the control of Sandra Morgan. At March 31, the fund holds $14 cash and petty cash tickets for office supplies, $128, and delivery expense, $15. Requirements 1. Explain how an imprest petty cash system works. 2. Journalize the establishment of the petty cash fund on March 1 and the replenishing of the fund on March 31. 3. Prepare a T-account...

is the pka of a histidine side chain always the same as that of the free...

is the pka of a histidine side chain always the same as that of the free amino acid? Why? how do titration curves differ between non ionizable and ionizable r groups? why? Biochemistry

Question