Intermediate Accounting: Chapter 2 verified already passed

Intermediate Accounting: Chapter 2 Debits increase asset accounts and decrease liability accounts. - correct answer True Adjusting journal entries are required to comply with the realization and matching principles. - correct answer True The adjusted trial balance contains only permanent accounts. - correct answer False A reversing entry at the beginning of a period for salaries would include a debit to salaries expense. - correct answer False The sale of merchandise on account would be recorded in a sales journal. - correct answer True The accounting equation can be stated as: - correct answer A - L - OE = 0 Examples of external transactions include all of the following except: - correct answer Depreciating equipment Incurring an expense for advertising on account would be recorded by: - correct answer Debiting an expense A sale on account would be recorded by: - correct answer Debiting assets Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.'s journal entry to record this transaction would include a: - correct answer Debit to investments Somerset Leasing received $33,600 for 24 months rent in advance. How should Somerset record this transaction? - correct answer Debit Cash 33,600