A credit is used to record an increase in all of the following accounts except:

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From Chapter 1 to 4
What is credit used to record an increase in?
What are 3 accounts that increase with a credit?
Which pair of accounts is increased by recording a credit?
Which of the following are increased by credits quizlet?

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From Chapter 1 to 4

Question	Answer
The primary objective of financial accounting is to: Serve the decision-making needs of internal users.	Provide accounting information that serves external users.
All of the following are external users of accounting information except: customers. Internal Revenue Service. human resource managers. shareholders. lenders.	human resource managers.
Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?	Expense recognition (Matching) principle.
The materiality constraint:	Prescribes that only information that would influence the decisions of a reasonable person need be disclosed.
Another name for equity is: Multiple Choice Net income. Expenses. Net assets. Revenue. Net loss	Net assets
f assets are $96,000 and liabilities are $31,300, then equity equals: Multiple Choice $31,300. $64,700. 96,000. $127,300. $223,300.	Assets = Liabilities + Stockholders' Equity $96,000 = $31,300 + Stockholders' Equity; Stockholders' Equity = $64,700
f the assets of a business increased $99,000 during a period of time and its liabilities increased $72,000 during the same period, equity in the business must have:	Assets = Liabilities + Stockholders' Equity Change in Assets = Change in Liabilities + Change in Stockholders' Equity Increase of $99,000 = Increase of $72,000 + Change in Stockholders' Equity Change in Owner's Equity = Increase of $27,000
The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect?	Equipment was purchased on credit
Grandmark Printing pays the current month's rent of $2,000 to the landlord of the building where its facilities are located. How does this transaction affect the accounting equation for Grandmark?	Assets would decrease $2,000 and equity would decrease $2,000.
If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation during the first month?	Assets and equity both increase at the time the rent is earned.
The financial statement that shows the changes in equity that resulted from net income (or net loss); and dividends to stockholders is the:	Statement of retained earnings.
Which of the following combinations results in a net loss reported on the income statement?	Total revenues of $70,000 and total expenses of $74,000.
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 185,000 Interest expense 15,000 Rent expense 25,000 Consulting revenue 420,000	Net Income = Revenues - Expenses Net Income = Consulting Revenue - Employee Salaries Expense - Interest Expense - Rent Expense Net Income = $420,000 - $185,000 - $15,000 - $25,000; Net Income = $195,000
A business's source documents: Include the ledger. Provide objective evidence that a transaction has taken place. Must be in electronic form. Are records of all increases and decreases in specific asset. Include the chart of accounts.	Provide objective evidence that a transaction has taken place.
The process of transferring general journal entry information to the ledger is called:	Posting
The balance column in a ledger account is:	A column for showing the balance of the account after each entry is posted.
Identify the account below that is classified as a liability in a company's chart of accounts: Cash Unearned Revenue Salaries Expense Accounts Receivable Supplies	Unearned Revenue
A credit: Multiple Choice Always decreases an account. Is the right-hand side of a T-account. Always increases an account. Is the left-hand side of a T-account. Always increases asset accounts.	Is the right-hand side of a T-account.
A credit is used to record an increase in all of the following accounts except: Multiple Choice Accounts Payable Service Revenue Unearned Revenue Wages Expense Common Stock	Wages Expense
A debit is used to record which of the following: Multiple Choice A decrease in an asset account. A decrease in an expense account. An increase in a revenue account. An increase in the common stock account. An increase in the dividends account.	An increase in the dividends account.
A law firm billed a client $3,300 for work performed in the current month. Which of the following general journal entries will the firm make to record this transaction?	Debit Accounts Receivable, $3,300; credit Legal Fees Revenue, $3,300.
Russell Co. received a $540 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will make to record the receipt of the bill?	Utilities Expense 540 Accounts Payable 540
Green Cleaning purchased $600 of office supplies on credit. The company's policy is to initially record prepaid and unearned items in balance sheet accounts. Which of the following general journal entries will make to record this transaction?	Debit Office supplies, $600; credit Accounts payable, $600.
At year-end, a trial balance showed total credits exceeding total debits by $5,450. This difference could have been caused by:	The balance of $6,100 in the Office Equipment account being entered on the trial balance as a debit of $650.
Co. had balance accounts at December 31: Cash 10,600 Acc. Recei. 2,120 Prepaid Insu. 2,640 Supplies 1,120 Acc. Pay. 5,300 Com. Stock 5,260 Ser. Rev. 7,600 Sal. Exp. 560 Util. Exp. 1,120 calculate net income for the period.	Net Income = Total Revenues − Total Expenses. (Service Revenue $7,600 − Salaries Expense $560 − Utilities Expense $1,120 = $5,920)
The accrual basis of accounting	Is generally accepted for external reporting because it is more useful than cash basis for most business decisions.
Adjusting entries made at the end of an accounting period accomplish all of the following except:	Assuring that external transaction amounts remain unchanged.
Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:	Items that require adjusting entries.
If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:	Debit Unearned Legal Fees and credit Legal Fees Earned.
Which of the following assets is not depreciated? Multiple Choice Store fixtures. Computers. Land. Buildings. Equipment	Land.
A Co. owns equip. with an original cost of $95,000, estimated salvage value of 5,000 and depreciated at 15,000/year using the straight-line depreciation method, only prepares adjustments at year-end. The adjusting entry (annual) is	Debit Depreciation Expense, $15,000; credit Accumulated Depreciation, $15,000.
Al Co. leased a portion of its store to another company for 8 months beg. on Oct. 1, monthly rate of $1,150; collected the entire $9,200 cash on Oct. 1 and recorded as unear. reve. .adj. entries are only made at year-end, and made on Dec. 31 would be:	A debit to Unearned Rent and a credit to Rent Revenue for $3,450. Explanation $9,200 × 3/8 = $3,450 earned by December 31
On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:	Debit Utilities Expense $215; credit Accounts Payable $215.
On Sep. 1, Company loaned $128,000, at 12% annual interest. Inter. and princi. will be collected in one year from the issue date. adjustments are only made at year-end, and the adjusting entry for accruing interest would need to make on Dec. 31?	Debit Interest Receivable, 5,120; credit Interest Revenue, $5,120. Explanation $128,000 × 0.12 × 4/12 = $5,120
Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and dividends accounts for the upcoming period and to update the retained earnings account for the events of the period just finished are referred to as:	Closing entries.
It is obvious that an error occurred in the preparation and/or posting of closing entries if:	all balance sheet accounts have zero balances
The Retained earnings account has a credit balance of $54,000 before closing entries are made. Total revenues for the period are $72,200, total expenses are $48,300, and dividends are $15,800. What is the correct closing entry for the expense accounts?	Debit Income Summary $48,300; credit Expense accounts $48,300.
The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what will be the balance in the Retained earnings account? Net income $ 133,400 Retained earnings 126,000 Dividends 49,000	Explanation Ending Retained earnings Balance = Beginning Retained earnings Balance + Net Income − Dividends Ending Retained earnings Balance = $126,000 + $133,400 − $49,000 = $210,400
Which of the following statements regarding gross profit is not true?	Gross profit is not calculated on the multiple-step income statement.
Expenses that support the overall operations of a business and include the expenses relating to accounting, human resource management, and financial management are called:	General and administrative expenses.
A debit to Sales Returns and Allowances and a credit to Accounts Receivable:	Recognizes that a customer returned merchandise and/or received an allowance.
Which of the following is not included on a purchase invoice? Seller's name and address. Name and address of the purchaser. Description of items purchased. Arrival date of items ordered. Credit terms.	Arrival date of items ordered.
A is a wholesaler that buys merchandise in large quantities. a list price of $500/unit on merchandise , and offers a 30% trade discount for purchases. The cost of shipping for the merchandise is $7/unit. Jasper's total purchase price per unit will be:	Explanation Trade discount = $500 * 30% = $150Total purchase price per unit = $500 − $150 + $7 = $357
A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that a customer has taken what percentage cash discount for early payment?	Explanation Discount = $30/$1,500 = 2%
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise.the company uses a perpetual , and the gross method, The correct journal entry to record the purchase on July 5 is:	Debit Merchandise Inventory $1,800; credit Accounts Payable $1,800.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. July 7, it returned $200 worth of merchandise. July 28, it paid the full amount due. the company uses a perpetual and he gross method, journal entry to record on July 7 is:	Debit Accounts Payable $200; credit Merchandise Inventory $200.
Mar. 12, Company sold $7,800 merchandise , with credit terms of 2/10, n/30. COGS is $4,500. Klein uses the perpetual and the gross method March 15, Babson returns $600 of the merchandise, the cost is $350. The entry make on Mar. 15 is (are):	Sales returns and allowances 600 Accounts receivable 600 Merchandise inventory 350 Cost of goods sold 350
Mar. 12, Company sold $7,800 merchandise , with credit terms of 2/10, n/30. COGS is $4,500. Klein uses the perpetual and the gross method March 15, Babson returns $600 of the merchandise, the cost is $350. Babson pays on March 20, entries for Company	Cash 7,056 Sales discounts 144 Accounts receivable 7,200 Explanation Accounts Receivable = $7,800 − $600 = $7,200 Sales Discounts = $7,200 × 0.02 = $144Cash = $7,200 − $144 = $7,056
Which of the following accounts would be closed at the end of the accounting period with a debit? Multiple Choice Sales Discounts. Sales Returns and Allowances. Cost of Goods Sold. Operating Expenses. Sales.	Sales.
Garza Company had sales of $151,000, sales discounts of $2,250, and sales returns of $3,625. Garza Company's net sales equals:	Explanation Net Sales = $151,000 − $2,250 − $3,625 = $145,125

What is credit used to record an increase in?

In accounting, a credit is an entry that records a decrease in assets or an increase in liability as well as a decrease in expenses or an increase in revenue (as opposed to a debit that does the opposite). So a credit increases net income on the company's income statement, while a debit reduces net income.

What are 3 accounts that increase with a credit?

A credit is always positioned on the right side of an entry. It increases liability, revenue or equity accounts and decreases asset or expense accounts.