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Questions and Answers
Which accounts have normal credit balances?
Which accounts have normal credit balances?
- Assets and Expenses
- Expenses and Revenues
- Liabilities and Revenues (correct)
- Assets and Liabilities
What is the normal debit balance for expenses?
What is the normal debit balance for expenses?
- Liabilities
- Revenues
- Expenses (correct)
- Assets
According to the Expense recognition principle, when should revenue be recognized in a service type of business?
According to the Expense recognition principle, when should revenue be recognized in a service type of business?
- When the service or product is manufactured
- When the service or product is ordered
- When the service or product is paid for
- When the service or product is delivered (correct)
Why are adjusting entries required?
Why are adjusting entries required?
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What happens to stockholders equity when expenses are incurred?
What happens to stockholders equity when expenses are incurred?
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Which side of an account shows the normal debit balance?
Which side of an account shows the normal debit balance?
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What is the purpose of an income statement?
What is the purpose of an income statement?
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What is the first step in the accounting process?
What is the first step in the accounting process?
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Which accounts have normal credit balances?
Which accounts have normal credit balances?
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What is the purpose of a retained earnings statement?
What is the purpose of a retained earnings statement?
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