13. Which of the following accounts is decreased with a credit? A) Rent Expense
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Question
13. Which of the following accounts is decreased with a credit? A) Rent Expense B) Advertising Fees Eaned C) Unearned Art Fees D) Owner's Capital 14. A withdrawal by the owner of a business will A) decrease net income. B) decrease owner's equity C) increase liabilities. D) not affect total assets. A transaction in which six months' rent is paid in advance results in a credit to Cash and a debit to A) Prepaid Rent. B) Rent Revenue. C) Rent Receivable. D) Rent Expense. 15. 16. A company that receives money in advance of performing a service A) debits Cash and credits Accounts Receivable. B) debits Cash and credits Unearned Fees. C) debits Cash and credits Prepaid Fees. debits Unearned Fees and credits Accounts Payable. D) When a company has performed a service but has not yet received payment, it A) debits Revenue from Services and credits Accounts Payable. B) makes no entry until the cash is received. C) debits Accounts Receivable and credits Revenue from Services. D) debits Revenue from Services and credits Accounts Receivable 7. . Which of the following transactions increases both assets and owner's equity? A) Payment received from a credit customer B) Received a bank loan C) Owner withdrawal of cash D) R endered a service,payment not yet receivedExplanation / Answer
13. Option (A) - Rent Expense is an expense account where the increase is denoted by debit and reduction is denoted by credit. Therefore, if it is credited there will be a decrease in Rent Expense account.
14. Option (B) - Withdrawals by Owner will decrease the owner's equity as it will be shown on the debit side owner's equity account.
15. Option ( A) - Prepaid rent account will be debited as the same creates an asset for the firm and will be shown on the assets side of the business.
16. Option (B) - The entry would be debit the cash (which is received) and credit the unearned fees which will be shown on the liabilities side of the balance sheet.
17. Option (C) - It will debit the Accounts Receivable (shown on the assets side of the balance sheet) and credit the Revenue of service account (shown in the income statement)
18. Option (B) - Receipt of Bank loan utilized in the business will increase the owner's equity as an introduction of more capital and increase the cash as well.
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