MGMT1A Chapter 1 fully
solved & updated
Debits (Dr) - answer LEFT; records incoming money; for every debit
in one account, another account must have a corresponding credit
of equal value
Credit (Cr) - answer RIGHT; records outgoing money; for every credit
in one account, another account must have a corresponding debit of
equal value
Accounting Equation - answer A = L + OE
assets - answer resources owned or controlled by a company that
have an expected future benefit; Normal Debit Balance; increase an
asset with Debit, decrease an asset with Credit; examples include
cash, accounts receivable, prepaid expenses, supplies, equipment,
land
Normal Debit Balance - answer Dividends
Expenses
Assets
Liabilities - answer claims by creditors against the assets of the
company. Obligation to provide products, services or assets to
others. in the future; Normal Credit Balance; increase with credit,
decrease with debit; examples are accounts payable, accrued
expenses, notes payable, deferred revenue
owner's equity - answer owner's claim on a company's assets; the
owner's residual interest in the assets of a business, after deducting
liabilities; examples are capital contributions, drawings, revenue,
expense
solved & updated
Debits (Dr) - answer LEFT; records incoming money; for every debit
in one account, another account must have a corresponding credit
of equal value
Credit (Cr) - answer RIGHT; records outgoing money; for every credit
in one account, another account must have a corresponding debit of
equal value
Accounting Equation - answer A = L + OE
assets - answer resources owned or controlled by a company that
have an expected future benefit; Normal Debit Balance; increase an
asset with Debit, decrease an asset with Credit; examples include
cash, accounts receivable, prepaid expenses, supplies, equipment,
land
Normal Debit Balance - answer Dividends
Expenses
Assets
Liabilities - answer claims by creditors against the assets of the
company. Obligation to provide products, services or assets to
others. in the future; Normal Credit Balance; increase with credit,
decrease with debit; examples are accounts payable, accrued
expenses, notes payable, deferred revenue
owner's equity - answer owner's claim on a company's assets; the
owner's residual interest in the assets of a business, after deducting
liabilities; examples are capital contributions, drawings, revenue,
expense
