Indicate Whether a Debit or Credit Entry Would Be Made

question 57

Essay

Indicate whether a debit or credit entry would be made to record the following changes in each account.
a. To decrease Cash.
b. To increase Owner, Capital.
c. To decrease Accounts Payable.
d. To increase Salaries Expense.
e. To decrease Supplies.
f. To increase Revenue.
g. To decrease Accounts Receivable.
h. To increase Owner, Withdrawals.

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Definitions:

IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments by calculating the interest rate at which the net present value of costs (cash outflows) of the investments equals the net present value of the benefits (cash inflows).

Internal Rate of Return

The specific interest rate at which the sum of all cash flows from a project equals a net present value of zero.

Net Present Value

An assessment that measures the current value of a dollar against its future value, considering the effects of inflation and returns.

Market Rates

The prevailing interest rates available in the marketplace for loans and deposits, set by the dynamics of supply and demand.