Typical Transactions

Question 1

When both a service is received and the payment is delivered than the entity would?

Answer 1

Subtract cash and subtract net assets but (increase expenses.)

Question 2

If a service is received and no payment is delivered than …

Answer 2

Accounts payable is increased and net assets are decreased (expenses are increased)

Question 3

If a service is not received but a payment is delivered than …

Answer 3

Pre-paid expenses are increased and Net Assets are decreased and (Expenses are increased)

Question 4

If a good is received and the payment is delivered then….

Answer 4

Subtract Cash and Increase Inventory or Equipment, etc.

Question 5

If a Good is received and no payment is delivered then …

Answer 5

Then increase Inventory/Equipment/etc. and increase Accounts Payable

Question 6

If a good is not received but the payment has been delivered then…

Answer 6

Decrease cash and increase Pre-Paid Inventory/Equipment etc.

Question 7

The entity has delivered a good and in turn a payment has been received increase…

Answer 7

Increase Cash, Increase Revenue. Decrease Net Assets (Increase Cost of Goods Sold)

Question 8

If the entity has delivered a good and has not received a payment then…

Answer 8

Increase Accounts Receivable, Increase Revenue. Decrease Inventory, Decrease Net Assets (Increase Cost of Goods Sold)

Question 9

If an entity has not delivered a Good but has received a payment to deliver a good then…

Answer 9

Increase Cash, Increase Deferred Revenue.