A business uses a credit to record Quizlet

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of equity as of May 31 of the current year?

Table of Contents Show

What does a business use a credit to record?
Do credits increase expenses?
Which account typically has a credit balance quizlet?
What is a credit entry?

A) $49,700.
B) $13,050.
C) $20,500.
D) $31,100.
E) $40,400.

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

A) Assets, $30,000 increase; equity, $30,000 increase.
B) Assets, $30,000 decrease; liabilities, $30,000 decrease.
C) Assets, $30,000 decrease; liabilities, $30,000 increase.
D) Liabilities, $30,000 decrease; equity, $30,000 increase.
E) Assets, $30,000 decrease; equity $30,000 decrease.

Ralph Pine Consulting received its telephone bill in the amount of $300, and immediately paid it. Which of the following general journal entries will Pine Consulting make to record this transaction?

A) Debit Telephone Expense, $300; Credit Cash, $300.
B) Debit Telephone Expense, $300; Credit Accounts Payable, $300.
C) Debit Cash, $300; Credit Telephone Expense, $300.
D) Debit Accounts Payable, $300; Credit Telephone Expense, $300.
E) Debit Prepaid Expense, $300; Credit Cash, $300.

Willow Rentals purchased $800 of office supplies on credit. Which of the following general journal entries will Willow Rentals make to record this transaction?

A) Debit Accounts Payable, $800; credit Office Supplies, $800.
B) Debit Accounts Receivable, $800; credit Office Supplies, $800.
C) Debit Office Supplies, $800; credit Accounts Receivable, $800.
D) Debit Office Supplies, $800; credit Accounts Payable, $800.
E) Debit Cash, $800; credit Office Supplies, $800.

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Accounting: What the Numbers Mean

9th EditionDaniel F Viele, David H Marshall, Wayne W McManus

345 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

Fundamentals of Financial Management

14th EditionEugene F. Brigham, Joel F Houston

845 solutions

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Fundamentals of Financial Management

14th EditionEugene F. Brigham, Joel F Houston

845 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

What does a business use a credit to record?

In accounting, a credit is an entry that records a decrease in assets or an increase in liability as well as a decrease in expenses or an increase in revenue (as opposed to a debit that does the opposite). So a credit increases net income on the company's income statement, while a debit reduces net income.

Do credits increase expenses?

Credits always appear on the right side of an accounting ledger. Credits increase a liability, revenue, or equity account and decrease an asset or expense account.

Which account typically has a credit balance quizlet?

Credit: Liabilities, revenues and sales, gains, and owner equity and stockholders' equity accounts normally have credit balances. These accounts will see their balances increase when the account is credited. Their balances will decrease when they debited.

What is a credit entry?

A credit entry is used to decrease the value of an asset or increase the value of a liability. In other words, any benefit giving aspect or outgoing aspect has to be credited in books of accounts. The credits are entered in the right side of the ledger accounts.