Questions from Financial Accounting

Q: Do you agree with the statement that ‘‘debits mean increase and

Do you agree with the statement that ‘‘debits mean increase and credits mean decrease’’? If not, what do debit and credit mean?

Q: The words debit and credit are used in two ways in accounting

The words debit and credit are used in two ways in accounting: ‘‘to debit an account’’ and ‘‘a debit balance.’’ Explain both usages of the terms debit and credit.

Q: Can accounting transactions be directly recorded in the general ledger? If

Can accounting transactions be directly recorded in the general ledger? If so, why do most companies initially record transactions in the journal?

Q: At the beginning of the year, Morgan Company had total assets

At the beginning of the year, Morgan Company had total assets of $425,000 and total liabilities of $260,000. Required: Use the fundamental accounting equation to answer the following independent ques...

Q: Describe the constraint on providing useful information.

Describe the constraint on providing useful information.

Q: All accounts have normal balances. What is the normal balance of

All accounts have normal balances. What is the normal balance of each of these accounts? a. Cash b. Sales c. Notes payable d. Inventory e. Retained earnings f. Salary expense g. Equipment h. Unearned...

Q: When a journal entry is made, what must be equal?

When a journal entry is made, what must be equal? Why?

Q: Why is the term double-entry an appropriate expression for describing

Why is the term double-entry an appropriate expression for describing an accounting system?

Q: What kinds of errors will a trial balance detect? What kinds

What kinds of errors will a trial balance detect? What kinds of errors will not be detectable by a trial balance?

Q: The bookkeeper for Riley Inc. made the following errors:

The bookkeeper for Riley Inc. made the following errors: a. A cash purchase of supplies of $348 was recorded as a debit to Supplies for $384 and a credit to Cash of $384. b. A cash sale of $3,128 was...