Question 1

What is the effect on the balance sheet when the business buys inventory on credit?

Accepted Answer

A)  increase asset inventory; increase liability creditor 
B)  decrease asset inventory; increase liability creditor 
C)  decrease asset inventory; decrease liability creditor 
D)  increase asset inventory; increase equity 
A)  increase asset inventory; increase liability creditor 
B)  decrease asset inventory; increase liability creditor 
C)  decrease asset inventory; decrease liability creditor 
D)  increase asset inventory; increase equity

Question 2

Another name for trade receivables is:

Accepted Answer

A)  debtors . 
B)  receivables. 
C)  accounts payable. 
D)  A and B 
A)  debtors . 
B)  receivables. 
C)  accounts payable. 
D)  A and B

What is the effect on the balance sheet when the business buys inventory on credit?

Another name for trade receivables is:

Introduction to Accounting

Different Accounting Entities

Measuring and Reporting Financial Performance

Measuring and Reporting Cash Flows

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Marginal Analysis

Full Costing

Budgeting

Projected Financial Statements

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Trends and Issues in Accounting

Filters

Exam 3: Measuring and Reporting Financial Position

What is the effect on the balance sheet when the business buys inventory on credit?

Another name for trade receivables is:

Introduction to Accounting

Different Accounting Entities

Measuring and Reporting Financial Performance

Measuring and Reporting Cash Flows

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Marginal Analysis

Full Costing

Budgeting

Projected Financial Statements

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Trends and Issues in Accounting

Filters