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ACC 557 WK2 - QUIZ 2 If the sum of the debit column equals...

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QUIZ 2 If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates the mathematical equality of the accounting equation. Credits increase both assets and liabilities. Which of the following correctly identifies normal balances of accounts? Assets Credit Liabilities Debit Stockholders' Equity Debit Revenues Credit Expenses Debit Dawson's Delivery Service purchased equipment for $2,500. The Company $500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and credited a liability account for $2,000. On July 7, 2008, Reethink Enterprises performed cash services of $1,400. The entry to record this transaction would include a debit to Service Revenue of $1,400. The usual sequence of steps in the transaction recording process is: journal ledger analyze. A compound journal entry involves three or more accounts. A complete journal entry does not show the new balance in the accounts affected by the transaction.
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