MGMT 20000 Study Guide - Quiz Guide: Liability Insurance, Accounting Equation, Accounting Information System
2 Feb 2019
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The measure/communication process of financial accounting is referred to as the. The accounting equation is in balance if there is a (an) Increase one asset and a decrease another asset. Increase in liabilities and an increase in equity. Increase in assets and a decrease in liabilities. Decrease in equity and an increase in assets. One asset increases and another asset decreases. The effects of purchasing inventories on credit are to: Paying insurance premium for the next two years. Received a maintenance bill to be paid the following month. Assume that clifford gardens, inc. performed landscaping service for ,250 on account for a river park. Decrease liabilities by ,250, and increase equity by ,250. The credit is on the right side of an asset account. The credit is on the left side of a liability account. The debit is on the right side of the account. The right side of a t-account is called the debit side.
