Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Loans, Part 3, Question 14
#1
Are loans debited to the cash account, or not (they aren't in the question)? Where do they go if not?
Excelsior, BS, pursuing degree

Completed:
CLEP: Hum. (67), Hist. of U.S. I (74), Hist. of U.S. II (71), Intro. Psych. (69), Intro. Soc. (72), Soc. Sci. and Hist. (74), Western Civ I (72), Western Civ II (70), Am. Lit. (60), Intro. to Educ. Psych. (62), P. of Management (74), P. of Market. (74), Intro. Bus. Law (67), P. of Accounting (60), AmGov (68)
DSST: Ethics in Am. (76), P. of Super.(67), HRM (65), Intro to Bus. (70), MIS (65), P. of Fin (62), M&B (65), P. of Stat. (68)
ECE: OB (B)
TECEP:: IntFin, SecAna

Others

Total Credits: 129
Reply
#2
I believe they are debited to the cash account. I hope I'm not wrong on that one. :eek:
Big Grin Matymus Primehilarious
Waterloo, NY
Excelsior College
B.S. General Business, Class of 2008


Fall 2011 - currently pursuing Pre-Pharmacy
Reply
#3
Matymus Wrote:I believe they are debited to the cash account. I hope I'm not wrong on that one. :eek:

You are not wrong on this one Matymus,

Assuming that the loan is made TO the company, it would INCREASE (debit) the cash account (current asset). At the same time, it would also INCREASE (credit) the Bank Loan Payable account (current liability).

Hope that helps,
Snazzlefrag
My name is Rob
_____________________________________
Exams/Courses Passed (43):
- Courses (4): 1 Excelsior, 1 CSU-Pueblo, 2 Penn Foster.
- Exams (39): 24 DSST, 15 CLEP.

Total Credits: 142 (12 not used).
[SIZE=1]GPA: 4.0
[/SIZE]
Reply
#4
snazzlefrag Wrote:You are not wrong on this one Matymus,

Assuming that the loan is made TO the company, it would INCREASE (debit) the cash account (current asset). At the same time, it would also INCREASE (credit) the Bank Loan Payable account (current liability).

Hope that helps,
Snazzlefrag

Good!! That's what I thought! I'm no CPA, but man...I like to at least think I have SOME accounting knowledge.
Big Grin Matymus Primehilarious
Waterloo, NY
Excelsior College
B.S. General Business, Class of 2008


Fall 2011 - currently pursuing Pre-Pharmacy
Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  A complex probability question Number_Theory 4 1,640 12-03-2021, 11:46 AM
Last Post: freeloader
  Question of college algebra inertia2018 3 2,464 05-02-2019, 07:30 PM
Last Post: dfrecore
  SL Accounting Question Mab81 3 2,644 07-06-2018, 08:10 PM
Last Post: Mab81
  Time and Distance question CLEP101 5 3,468 03-22-2018, 12:37 PM
Last Post: bluebooger
  IC Flashcard Question gnat1001 2 2,970 05-03-2017, 05:08 PM
Last Post: sanantone
  Statistics Question re: Mean soliloquy 6 3,179 08-04-2014, 01:31 PM
Last Post: Jonathan Whatley
  Probability Formula Question soliloquy 4 2,473 07-30-2014, 07:50 PM
Last Post: jdsdog10
  Principles of Finance sample question from TESC - which formula to use? OfficerA 0 1,795 07-20-2014, 08:34 PM
Last Post: OfficerA
  APA Citation question JanusthePhoenix 5 3,356 12-03-2009, 03:04 AM
Last Post: JanusthePhoenix
  Microeconomics CLEP question? MCunningham 0 2,435 06-30-2009, 11:00 PM
Last Post: MCunningham

Forum Jump:


Users browsing this thread: 1 Guest(s)