Exam 4: Business Transactions

For the accounting equation to balance each transaction must:

Payment of an electricity account for cash results in a (debit/credit)_________ entry in the electricity expense account.

If assets are $100 000,opening equity is $50 000,liabilities are $20 000 and income is $85 000,expenses must be:

If the total of the credits is $72 dollars greater than the total of the debits in the trial balance,the error is most likely to be:

The payment of a liability:

The basic accounting equation is Assets = _______________ + Equity.

The accounts land,accounts receivable,sales revenue and accounts payable should be classified as follows:

Accounts for XYZ are as follows: Cash \ 4000 Overdraft 11000 Creditors 3000 Invertory 2700 Accounts Receivable 8100 Furniture 4500 Loan payable 15000 Car 12000 Equity is:

The sale on credit of a computer by Computers R Us is:

An investment by shareholders in a company will increase:

A present obligation of the entity arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits is the definition of:

The liability created by a business purchasing stationary on credit is an:

An accountant sent an invoice to a customer,John Brown for $500 for preparing his tax return.The debit and credit entries are:

If only one side of a $100 transaction is recorded,the imbalance in the worksheet will be:

The statement that is incorrect is:

The statement concerning journal and ledger accounts that is true is:

The error that would be detected by a trial balance is:

The effect on the accounting equation of the business banking $1000 of cash received from a debtor paying his account for an amount owing is:

Which of these is not part of a general journal entry?

A transposition of figures is easy to find as the error on the worksheet will be divisible by ____________________.