Question
which financial statement elements apply to each item described below. Item Financial Statement Element for Account to be Debited Financial Statement Element for Account to
which financial statement elements apply to each item described below.
| Item | Financial Statement Element for Account to be Debited | Financial Statement Element for Account to be Credited |
| A cash dividend is declared and paid to shareholders. | Equity | Current Assets |
| Cash is used to purchase a machine that will be used in the production process over the next five years. | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
| Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss |
| Income taxes are calculated based on a company's profit. The taxes will be paid next year. | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
| Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
|
| A shareholder invests money in a business in exchange for issued shares. | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
|
| An insurance settlement is received for a fully depreciated asset that was destroyed in a fire. | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
|
| An allowance for doubtful accounts is established based on estimates of future uncollectible accounts. | Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss
| Non-current Liabilities/Current Liabilities/Income - Revenue/Equity/Income - Gains/Non-current Assets/Expenses/Current Assets/Expenses - Loss |
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Basic Accounting Concepts Principles And Procedures Volume 2
Authors: Gregory Mostyn, Worthy And James
1st Edition
0979149495, 9780979149498
