Quiz Ch 02 – Strum Company
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What would be the accounting treatment in Sturm Company’s books for a partner’s purchase of a new yacht for personal use with his own funds?
What would be the accounting treatment in Sturm Company’s books for a partner’s purchase of a new yacht for personal use with his own funds?
On a T-account, what does the left-hand side represent?
In accounting, a prepaid expense is recognized as an asset.
Credits are used to record an increase in Accounts Receivable.
For a given account, the sum of its debits must be equal to the sum of its credits.
Posting the same journal entry twice by a bookkeeper will create an imbalance in the trial balance.
When the total credits exceed the total debits in an account, it will have a credit balance.
The basic principle of accounting dictates that every business transaction involves a debit and a credit.
When using debits, the impact on assets, revenues, and dividends is an increase.
An increase in common stock and retained earnings are achieved through the use of debits.