Principles of Accounting Chapter 2

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction would include

a debit to cash

Revenue accounts and expense accounts are increased by __________ and __________, respectively.

credits; debits

Which of the following accounts is a liability account?

1) Notes Payable 2) Accounts Payable 3) Wages Payable ** ALL 3 of them**

On March 15, Civic Company paid its employees for two weeks' wages. This transaction will have which of the following impacts on the accounting equation?

Assets will decrease and stockholders' equity will increase

1. Which of the following accounts is NOT an asset account?

Cash (Accounts Payable) Building Equipment **Accounts Payable is NOT an asset.

4. On December 15, Zapp Company paid $1,900 to Sylvan Supply Co. on account. The journal entry to record this transaction would include a __________ to __________.

credit; Cash

1. Asset accounts and liability accounts are increased by __________ and __________, respectively.

debits; credits

On May 21, Civic Company paid dividends of $1,000 to the shareholders. The journal entry to record this transaction would include a debit to

dividends

Purchasing supplies on account __________ a(n) __________ account

increases; liability

The process of transferring the debits and credits from the journal entries to the accounts in the ledger is called

posting

Increases in stockholders' equity as a result of selling services or products to customers are known as

revenues.