MBA 700 Module 2 & 3 Homework Questions With Clarified Answers

MBA 700 Module 2 & 3 Homework Questions With
Clarified Answers

When an asset is increased, we should _____. Correct Answer - debit

When an asset is decreased, we should Correct Answer - credit

Which of the accounts are INCREASED with a DEBIT and DECREASED with a
CREDIT Correct Answer - dividends, expenses, assets

Which of the accounts are DECREASED with a DEBIT and INCREASED with a
CREDIT Correct Answer - liabilities, owners equity, revenue

Accounting Cycle
1
2
3
4
5 Correct Answer - analyze, record, adjust, report, close

What is reported as STOCKHOLDERS'S EQUITY in a balance sheet? Correct
Answer - common stock and retained earnings

Liabilities normally carry a _____ balance and are shown in the ___ Correct
Answer - credit, balance sheet

Point in Time (snapshot) Correct Answer - balance sheet

A trial balance can best be explained as a list of ____ accounts and their
balances at a ___ date Correct Answer - all, particular

Receiving cash from an account receivable ___ one asset and ___ another asset
Correct Answer - increases, decreases

Revenues have what effect on the accounting equation? _____ Correct
Answer - increase stockholders equity

Rent expense on ___ Correct Answer - income statement