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Question
An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction:A.Credit another asset account for $1,500.
B.Credit another liability account for $1,500.
C.Credit an expense account for $1,500.
D.Credit the owner's capital account for $1,500.
E.Debit another asset account for $1,500.
Answer
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Related questions
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B.Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
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D.Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
E.Adjusting entries affect the cash account.
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