ACC 221 3,4,5 || Get it Correct.
The retained earnings account is an asset account similar to the inventory account correct
answers false
the retained earnings is similar to common stock account in that they are both owners to claim to
assets correct answers true
the retained earnings account tracks owners claim to assets that result from the operation of the
business correct answers true
the retained earnings account is increased by debit and decreased by credit correct answers false
when a transaction increases a companys accounts receivable account the retained earnings
account must be decreased to keep accounting system in balance correct answers false
a transaction which decreases the retained earnings account must always decrease an asset
account to keep in balance correct answers false
common stock account tracks the owners claim to assets that result from the operation of the
business correct answers false
the collection of cash from a customer will always result in an increase in the retained earnings
account correct answers false
the payment of wages to employees for work they performed during the current accounting
period will result in a credit to the cash account correct answers true
the common stock account is decreased by a debit while retained earnings account is increased
by a debit correct answers false
, accounts receivable correct answers asset
interest payable correct answers liabilities
retained earnings correct answers owners equity
increases when transactions of owners claims increases
decreases when transactions of owners claim decreases
common stock vs retained earnings correct answers common stock is from owners putting
money into the business
retained earnings is the result from operations of the business
paying wages to employees correct answers since cash is being taken out cash account is credited
to reduce the balance
thus retained earnings decreases as well since somebody's claim to assets must also decline
selling inventory to customer on credit correct answers sold to customer at selling price (4500)
the inventory that is sold to the customer cost the company (2000)
4500 debits to accounts receivable (paying in future)
this also causes retained earnings to increase by 4500
The retained earnings account is an asset account similar to the inventory account correct
answers false
the retained earnings is similar to common stock account in that they are both owners to claim to
assets correct answers true
the retained earnings account tracks owners claim to assets that result from the operation of the
business correct answers true
the retained earnings account is increased by debit and decreased by credit correct answers false
when a transaction increases a companys accounts receivable account the retained earnings
account must be decreased to keep accounting system in balance correct answers false
a transaction which decreases the retained earnings account must always decrease an asset
account to keep in balance correct answers false
common stock account tracks the owners claim to assets that result from the operation of the
business correct answers false
the collection of cash from a customer will always result in an increase in the retained earnings
account correct answers false
the payment of wages to employees for work they performed during the current accounting
period will result in a credit to the cash account correct answers true
the common stock account is decreased by a debit while retained earnings account is increased
by a debit correct answers false
, accounts receivable correct answers asset
interest payable correct answers liabilities
retained earnings correct answers owners equity
increases when transactions of owners claims increases
decreases when transactions of owners claim decreases
common stock vs retained earnings correct answers common stock is from owners putting
money into the business
retained earnings is the result from operations of the business
paying wages to employees correct answers since cash is being taken out cash account is credited
to reduce the balance
thus retained earnings decreases as well since somebody's claim to assets must also decline
selling inventory to customer on credit correct answers sold to customer at selling price (4500)
the inventory that is sold to the customer cost the company (2000)
4500 debits to accounts receivable (paying in future)
this also causes retained earnings to increase by 4500
