Scelta multipla
In the journal entry to issue shares for cash, which normal balance does the Common Stock account have and how is it recorded?
78
views
2. Transaction Analysis
Journal Entries: Debits and Credits
Scelta multipla
In journal entries, a debit to Salaries Expense will:
A
Decrease liabilities
B
Decrease Salaries Expense
C
Increase Cash
D
Increase Salaries Expense
Guida verificata passo dopo passo1
Understand the nature of the Salaries Expense account: Salaries Expense is an expense account, and expenses increase with debits and decrease with credits.
Recall the basic accounting rule for expenses: Debiting an expense account increases the expense, while crediting it decreases the expense.
Analyze the effect of a debit to Salaries Expense: Since it is an expense account, a debit entry will increase the Salaries Expense balance.
Consider the impact on liabilities and cash: A debit to Salaries Expense does not directly decrease liabilities or increase cash; those accounts are affected by other transactions.
Conclude that a debit to Salaries Expense increases the expense, which aligns with the correct answer: 'Increase Salaries Expense'.
Video correlati
Pratica correlata
