Management and Organizational Studies 3370A/B Study Guide - Quiz Guide: Retained Earnings, General Ledger, Deferral

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

Collection of an account receivable will increase total assets. A. debit the asset and debit the liability. C. debit the liability and credit the asset. D. debit the asset and credit the liability. A compound journal entry affects more than two accounts. A cash payment by a corporation to its shareholders by way of a distribution of profit is: Disclosing in one place the complete effect of a transaction. If a revenue account is credited, this must increase shareholders" equity. The process of identifying the specific affected accounts and the amount of the change in each account is referred to as: Debits increase asset accounts and decrease liability accounts. Under this concept, credits will always result in an increase in the underlying account balance. Under this concept every transaction reduces at least one account. C. under this concept, debits will always result in an increase in the underlying account balance.