C) Revenues increase equity, so a revenue account's normal balance is a debit balance. stockholders’ D) Revenues increase equity, so a revenue account's normal balance is a credit balance. stockholders’ Answer: D LO: 2-3 Difficulty: 2 EOC Ref: E2-16 AACSB: Analytic Skills AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting 2.3-34 A business purchased $200 of supplies on account and recorded the following journal entry: Supplies 200 Accounts payable 200 Which of the following sets of ledger accounts reflect the posting of this transaction? A) Supplies Accounts payable 200 200 B) Supplies Accounts payable 200 200 C) Supplies Accounts payable 200 200 D) Supplies Accounts payable 200 200 Answer: C LO: 2-3 Difficulty: 1 EOC Ref: S2-7 AACSB: Analytic Skills AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting
C) Revenues increase stockholders’ equity, so a revenue account's normal balance is a debit balance. D) Revenues increase stockholders’ equity, so a revenue account's normal balance is a credit balance. Answer: D LO: 2-3 Difficulty: 2 EOC Ref: E2-16 AACSB: Analytic Skills AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting 2.3-34 A business purchased $200 of supplies on account and recorded the following journal entry: Supplies 200 Accounts payable 200 Which of the following sets of ledger accounts reflect the posting of this transaction? A) Supplies 200 B) Supplies 200 C) Supplies 200 D) Supplies 200 Accounts payable 200 Accounts payable 200 Accounts payable 200 Accounts payable 200 Answer: C LO: 2-3 Difficulty: 1 EOC Ref: S2-7 AACSB: Analytic Skills AICPA Business Perspective Competencies: Strategic/Critical Thinking AICPA Functional Competencies: Reporting
Financial-and-Managerial-Accounting-3rd-Edition-Horngren,-Harrison,-Oliver-Test-Bank.docx