Questions
Single choice
Using the T account below, which of the following statements is correct
Options
A.a. "Pass Go" Income has decreased and Tax Expense has increased
B.b. The business has received “Pass Go” Income of $200 and paid Tax expense of $300
C.c. "Pass Go" income has increased and Tax Expense has decreased
D.d. The business has paid “Pass Go” expense of $200 and received $300 Tax revenue
View Explanation
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Step-by-Step Analysis
Before diving into which option fits the T-account, let's lay out what the T-account picture shows. The cash at bank T-account has a line for "Pass Go" Income $200 on the left side, and a separate section shows Tax expense $300 on the right side. In double-entry accounting, increases to assets (like cash) are recorded on the debit (left) side, while expenses are typically recorded on the debit side as well; however, the visual indicates that income i......Login to view full explanationLog in for full answers
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