Are liability accounts increased by debits or credits?
What will be an ideal response?
Credits
Debits decrease liability and stockholders' equity accounts; credits increase liability and stockholders' equity accounts.
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A change in accounting estimate affected by a change in accounting principle should be reported as
A) a change in accounting principle. B) a change in accounting estimate and a change in accounting principle. C) a change in accounting estimate. D) neither a change in accounting estimate nor a change in accounting principle.
Contribution margin information is not relevant for
a. the elimination of unprofitable segment decisions. b. pricing decisions for special orders. c. sales mix with resource constraint decisions. d. determining the amount that sales exceeded fixed costs.
Use symbols, icons, or other recognizable illustrations to _____________________ the reader
a. attract the attention of b. convey messages to c. make the document visually pleasing to d. redirect the attention of
Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:
A. Earned revenues. B. Bills. C. Current liabilities. D. Current assets. E. Operating cycle liabilities.