A credit purchase of a business expense item should be recorded with a debit to an expense account and a credit to Accounts Payable.  True False

A company sells merchandise to a customer on credit. The journal entry to record this transaction would include a debit to the Accounts account.

Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes:Multiple Choicea debit to Purchases and a credit to Accounts Payable.a debit to Accounts Payable and a credit to Purchases.a debit to Purchases and a credit to Accounts Receivable.a credit to Purchases and a credit to Accounts Payable.

Asset accounts normally have credit balances and expense accounts normally have debit balances.  True False

Select all that applyRather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies.Multiple select question.Record all prepaid expenses with credits to liability accounts.Record all prepaid expenses with debits to expense accounts.Record all prepaid expenses with credits to expense accountsAny unused prepaids existing at end of period are transferred to asset accounts.

In recording transactions for a business, the accountant will follow the Accounting Entity principle. This means that the accountant will:a.record cash transactions separately from credit transactionsb.separate spending on purchases from spending on non-current assetsc.separate the financial activities of the business from those of the ownerd.record revenues and expenses separately to calculate profits and losses