Accounting (3)

. An accountant has debited an asset account for $800 and credited a liability account for $700. Which of the following would be an incorrect way to complete the recording of the transaction?

... Credit a stockholders' equity account for $100.

Debits

... increase assets and decrease liabilities.

Courtney Company purchased equipment for $1,800 cash. As a result of this event,

... total assets remained unchanged.

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $900. The Cash account has a

...$300 debit balance.

Comstock Company provided consulting services and billed the client $2,500. As a result of this event

...Both assets and equity increased by $2,500.

An accountant has debited an asset account for $1,000 and credited a liability account for $500. What can be done to complete the recording of the transaction?

...Credit a different asset account for $500.

Budke Corporation paid dividends of $5,000. As a result of this event, the

...Dividends account was increased by $5,000.

Which of the following describes the classification and normal balance of the Retained Earnings account?

...Stockholders' equity, credit

Powers Corporation received a cash advance of $500 from a customer. As a result of this event,

...assets increased by $500.

A payment of a portion of an accounts payable will

...not affect stockholders' equity.

The normal balance of any account is the

...side which increases that account.

A debit to an asset account indicates a(n)

Increase in the asset

A revenue account

Is increased by credits