An Accountant Has Debited an Asset Account for $1,300 and Credited

question 97

Multiple Choice

An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

• A) Credit an asset account for $800.
• B) Credit another liability account for $800.
• C) Credit a Stockholders' account for $800.
• D) Debit a Stockholders' account for $800.

Understand the importance of operational definitions in research.

Differentiate between quantitative and qualitative research methods.

Recognize the foundational theories of human development and their practical implications.

Understand the concept of validity in research and its importance.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Operating Activities

Those activities directly related to the production, sale, and delivery of a company's products or services, as reflected in its income statement.

Current Accounts

Balances held in checking accounts that are typically used for the day-to-day money transactions and management.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.