Author Question: Which of the following accounts has a normal credit balance? a. Accounts Receivable b. Sales c. ... (Read 255 times)

colton · **on:** Jul 5, 2018

Which of the following accounts has a normal credit balance?
a. Accounts Receivable
b. Sales
c. Merchandise Inventory
d. Delivery Expense

Question 2

State the most applicable accounting rule for each of the following situations. Each rule can be used more than once. An accounting rule can be a principle, assumption, constraint, or information characteristic.

1. Maids-R-Us recorded using supplies in the same period the supplies were used instead of expensing them in the period when they were purchased.
2. Clean Sweep cleaned an office building in October and was paid in November. Revenue was reported in October.
3. Team Shirts sends a set of financial statements prepared in accordance with GAAP to First Bank every month.
4. Mary Ellis, owner of Clean Sweep, has a bank account for her business separate from her personal bank account.
5. Jem's Jewelers purchased a three-month insurance policy on its diamond inventory. The cost of the policy was recorded as an asset. Later one-third of the asset was expensed each month over the three-month policy.

hanadaa · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

b

Answer to Question 2

1. Matching principle, 2. Revenue-recognition principle, 3. Consistency,
4. Separate-entity assumption, 5. Matching principle.