Accounting Problem
• States briefly the rules of debit and credit as applied to asset accounts and as applied to liability and owner's equity account.
• What requirement is imposed by the double entry system in the recording of any business transaction?
• Explain the effect of operating profitably on the balance sheet of a business entity.
• Does net income represent a supply of cash that could be distributed to stockholders in the form of dividends? Explain.
• When do accountants consider revenue to be realized? what basic question about recording revenue in accounting records is answered by the realization principle?
• In what accounting period does the matching principle indicate that an expense should be recognized ?
• Explain the rules of debit and credit with respect to transactions recorded in revenue and expense accounts.
• What are some of the limitation of a trail balance?
• How do dividends affect owners equity? Are they treated as a business expense? explain
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.