A credit is used to record a(n): O Increase in an asset account. O Decrease in a

Question

A credit is used to record a(n): O Increase in an asset account. O Decrease in an owner's equity account O Decrease in a liability account O Increase in a liability account. Question 1.2 Which of the following statements is false? O The normal balance in accounts payable is a credit O The normal balance in owner's equity is a debit O The normal balance in owner's equity is a credit. O The normal balance in accounts receivable is a debit. Question 1.3 Which one of the following accounts normally has a credit balance? O Cash O Land O Fees Earned O Wage Expense

Explanation / Answer

1.1 Option D. Increase a liability account. A credit is used to increase liability or owner's equity and decrese in an asset account

1.2 Option B. the normal balance for owner's equity is debit is a false statement because the normal balance for owner's equity is Credit.

1.3 Option C. Fees earned will have credit balance on the basis of accounting golden rule Nominal account - Debit all expenses and losses and credit All incomes and gains. As fees earned is an income it will have credit balance on basis of golden rule

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---