BACHELOR OF SCIENCE IN ACCOUNTANCY Study Guide - Final Guide: Capital Account, Promissory Note, Accounts Receivable
7 Aug 2021
Department
Professor
Document Summary
Write true if the statement is correct or false if it is incorrect. Like the journal, the ledger provides each account name its running balance. A compound journal entry means two or more single entries combined into one journal entry. The normal balance of accounts payable is a debit amount. For every business transaction, there are at least two accounts affected. False 5. credit represents increases in revenue, capital and expenses. The allowance for doubtful accounts is not part of asset account because it has a normal credit balance. To increase the amount of liability, the liability accounts should be credited. Increases in asset mean increases in liabilities and/or increases in capital or equity. The total value of credits in most cases is higher than the total value of debits. A collection of accounts receivable has no effect on total assets. Date: 09/12/2020: which of the following has a normal debit balance? a. )
