Question 1

A chart of accounts is a:

Accepted Answer

A) planning device used by management to anticipate information flows through the accounting system. 
B) list of accounts receivable. 
C) chart showing the organisational structure of the firm. 
D) plan of the ledger listing account titles and their related numbers. 
A) planning device used by management to anticipate information flows through the accounting system. 
B) list of accounts receivable. 
C) chart showing the organisational structure of the firm. 
D) plan of the ledger listing account titles and their related numbers.

Question 2

If a transaction causes an equity account to increase,which of these related effects may also occur?

Accepted Answer

A) An increase of an equal amount in a liability account. 
B) An increase of an equal amount in an asset account. 
C) A decrease of an equal amount in an asset account. 
D) An increase of an equal amount in another equity account. 
A) An increase of an equal amount in a liability account. 
B) An increase of an equal amount in an asset account. 
C) A decrease of an equal amount in an asset account. 
D) An increase of an equal amount in another equity account.

Question 3

The true statement concerning the accounting period is:

Accepted Answer

A) the length of the accounting period varies with the needs of users. 
B) the accounting period originates from the accounting equation. 
C) must be at least 6 months long. 
D) depends on which country the business is located in. 
A) the length of the accounting period varies with the needs of users. 
B) the accounting period originates from the accounting equation. 
C) must be at least 6 months long. 
D) depends on which country the business is located in.

Question 4

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Accepted Answer

A) DR buildings $100 000; CR bank $100 000 
B) DR buildings $300 000; CR bank $300 000 
C) DR buildings $300 000; CR bank $100 000; CR mortgage $200 000 
D) DR buildings $300 000; CR capital $300 000 
A) DR buildings $100 000; CR bank $100 000 
B) DR buildings $300 000; CR bank $300 000 
C) DR buildings $300 000; CR bank $100 000; CR mortgage $200 000 
D) DR buildings $300 000; CR capital $300 000

A chart of accounts is a:

If a transaction causes an equity account to increase,which of these related effects may also occur?

The true statement concerning the accounting period is:

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 3: Recording Transactions

A chart of accounts is a:

If a transaction causes an equity account to increase,which of these related effects may also occur?

The true statement concerning the accounting period is:

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters