Question 1

Some of ABC's transactions for the month of October are as follows.Which transaction,if any,is an expense for the month of October?

Accepted Answer

A) Purchased $50 worth of petrol on credit,to be paid for in November 
B) Paid $1000 off a loan obtained during July 
C) Paid a mechanic $250 for repair work carried out in September 
D) Purchased a photocopier for $15 000 
A) Purchased $50 worth of petrol on credit,to be paid for in November 
B) Paid $1000 off a loan obtained during July 
C) Paid a mechanic $250 for repair work carried out in September 
D) Purchased a photocopier for $15 000

Question 2

The business hires an office manager at $700 a week.The immediate effect on the accounting equation is to:

Accepted Answer

A) increase equity by $700 and decrease the asset cash by $700 
B) decrease the asset cash by $700 and decrease equity by $700 
C) no effect as this is not a business transaction 
D) increase wages by $700 and decrease equity by $700 
A) increase equity by $700 and decrease the asset cash by $700 
B) decrease the asset cash by $700 and decrease equity by $700 
C) no effect as this is not a business transaction 
D) increase wages by $700 and decrease equity by $700

Question 3

Accounts for Printers Pty Ltd are as follows:
$\begin{array}{llcc}
  \text { Cash } & \$2000 \
 \text {Creditors  } &10000\
 \text { Accounts Receivable } &11700\
 \text { Office equipment } &4500\
 \text { Loan payable } &14000\
 \text {  Motor vehicle} &32000\
\end{array}$

Equity is:

Accepted Answer

A) $54 200 
B) $2000 
C) $50 200 
D) $26 200 
A) $54 200 
B) $2000 
C) $50 200 
D) $26 200

Question 4

When a customer eventually pays for items that have been purchased on credit,the transaction will affect:

Accepted Answer

A) an asset and a liability 
B) an asset and an expense 
C) two assets 
D) an asset and income 
A) an asset and a liability 
B) an asset and an expense 
C) two assets 
D) an asset and income

Question 5

A _____________ is a record in which each business transaction appears in date order.

Accepted Answer

The answer of A _____________ is a record in which...

Question 6

Income has a (positive/negative)____________________ effect on Equity.

Accepted Answer

The answer of Income has a (positive/negative)____________________ effect on Equity....

Question 7

If: $\begin{array}{l}
\text { assets } &=\$20000\
\text { liabilities } &=\$11500\
\text { income }&=\$36900 \
\text { equity at start }&=\$7400\
\end{array}$

The amount of expense for the period was:

Accepted Answer

A) $35 800 
B) $26 200 
C) $16 600 
D) $24 300 
A) $35 800 
B) $26 200 
C) $16 600 
D) $24 300

Question 8

A business borrowed $20 000 from AXY Finance.The debit and credit entries for this transaction are:

Accepted Answer

A) Debit accounts payable $20 000;Credit loan from AXY finance $20 000 
B) Debit loan from AXY finance $20 000;Credit accounts payable $20 000 
C) Debit cash $20 000;Credit loan from AXY finance $20 000 
D) Credit loan from AXY finance $20 000;Debit cash $20 000 
A) Debit accounts payable $20 000;Credit loan from AXY finance $20 000 
B) Debit loan from AXY finance $20 000;Credit accounts payable $20 000 
C) Debit cash $20 000;Credit loan from AXY finance $20 000 
D) Credit loan from AXY finance $20 000;Debit cash $20 000

Question 9

Which of the following is not a business transaction?

Accepted Answer

A) providing services on credit 
B) purchasing inventory on credit 
C) signing a contract to hire a new employee 
D) withdrawal of cash by the owner from the business bank account 
A) providing services on credit 
B) purchasing inventory on credit 
C) signing a contract to hire a new employee 
D) withdrawal of cash by the owner from the business bank account

Question 10

Which of these would be classed as a transaction on credit?

Accepted Answer

A) Payment of salaries 
B) Depreciation of office equipment 
C) Withdrawal of capital 
D) Sale of goods on account 
A) Payment of salaries 
B) Depreciation of office equipment 
C) Withdrawal of capital 
D) Sale of goods on account

Question 11

The double entry accounting method requires each transaction to have at least ___________ effects on the accounting equation.

Accepted Answer

The answer of The double entry accounting method requires each...

Question 12

The effect on the accounting equation of the business paying $275 cash for mobile phone charges is:

Accepted Answer

A) a decrease in the asset cash of $275 and a decrease in the liability accounts payable of $275 
B) a decrease in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense. 
C) an increase in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense. 
D) a decrease in the asset cash of $275 and an increase in profit and loss of $275 to record the phone expense. 
A) a decrease in the asset cash of $275 and a decrease in the liability accounts payable of $275 
B) a decrease in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense. 
C) an increase in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense. 
D) a decrease in the asset cash of $275 and an increase in profit and loss of $275 to record the phone expense.

Question 13

The abbreviation for credit is _________.

Accepted Answer

The answer of The abbreviation for credit is _________....

Question 14

Liabilities + equity should always be:

Accepted Answer

A) less than assets 
B) equal to assets 
C) greater than assets 
D) greater than or equal to assets 
A) less than assets 
B) equal to assets 
C) greater than assets 
D) greater than or equal to assets

Question 15

The effect on the accounting equation of the business purchasing a new motor vehicle on credit for $35 500 is:

Accepted Answer

A) an increase in the asset Motor Vehicles of $35 500 and a decrease in the asset cash of $35 500. 
B) an increase in the asset Motor Vehicles of $35 500 and a decrease in the liability accounts payable of $35 500 
C) a decrease in the asset Motor Vehicles of $35 500 and an increase in the liability accounts payable $35 500 
D) an increase in the asset Motor Vehicle of $35 500 and an increase in the liability accounts payable $35 500 
A) an increase in the asset Motor Vehicles of $35 500 and a decrease in the asset cash of $35 500. 
B) an increase in the asset Motor Vehicles of $35 500 and a decrease in the liability accounts payable of $35 500 
C) a decrease in the asset Motor Vehicles of $35 500 and an increase in the liability accounts payable $35 500 
D) an increase in the asset Motor Vehicle of $35 500 and an increase in the liability accounts payable $35 500

Question 16

Profit is added to opening equity to calculate ending _________.

Accepted Answer

The answer of Profit is added to opening equity to...

Question 17

The duality concept requires that each transaction must be recorded:

Accepted Answer

A) in at least two different accounts. 
B) in a journal and a ledger. 
C) in two sets of books. 
D) first as income than as an expense. 
A) in at least two different accounts. 
B) in a journal and a ledger. 
C) in two sets of books. 
D) first as income than as an expense.

Question 18

Occurrences that have the potential to affect the entity in some way,but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party are known as ______________ ______________.

Accepted Answer

The answer of Occurrences that have the potential to affect...

Question 19

If a transaction causes an asset account to increase,which of the following effects of equal amount may also occur?

Accepted Answer

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

Question 20

For the cash account to decrease and the profit to decrease the transaction occurring could have been:

Accepted Answer

A) purchase of a new printer for the owner's home computer. 
B) repayment of a loan. 
C) payment of an electricity bill. 
D) agreement with a supplier on the value of the next delivery. 
A) purchase of a new printer for the owner's home computer. 
B) repayment of a loan. 
C) payment of an electricity bill. 
D) agreement with a supplier on the value of the next delivery.

Some of ABC's transactions for the month of October are as follows.Which transaction,if any,is an expense for the month of October?

The business hires an office manager at $700 a week.The immediate effect on the accounting equation is to:

Accounts for Printers Pty Ltd are as follows: Cash \2 000 Creditors 10000 Accounts Receivable 11700 Office equipment 4500 Loan payable 14000 Motor vehicle 32000 Equity is:

When a customer eventually pays for items that have been purchased on credit,the transaction will affect:

A _____________ is a record in which each business transaction appears in date order.

Income has a (positive/negative)____________________ effect on Equity.

If: assets = \2 0000 liabilities = \1 1500 income = \3 6900 equity at start = \7 400 The amount of expense for the period was:

A business borrowed $20 000 from AXY Finance.The debit and credit entries for this transaction are:

Which of the following is not a business transaction?

Which of these would be classed as a transaction on credit?

The double entry accounting method requires each transaction to have at least ___________ effects on the accounting equation.

The effect on the accounting equation of the business paying $275 cash for mobile phone charges is:

The abbreviation for credit is _________.

Liabilities + equity should always be:

The effect on the accounting equation of the business purchasing a new motor vehicle on credit for $35 500 is:

Profit is added to opening equity to calculate ending _________.

The duality concept requires that each transaction must be recorded:

Occurrences that have the potential to affect the entity in some way,but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party are known as .

If a transaction causes an asset account to increase,which of the following effects of equal amount may also occur?

For the cash account to decrease and the profit to decrease the transaction occurring could have been:

Introduction to Accounting

Business Sustainability

Business Structures

Balance Sheet

Income Statement and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Cost-Volume-Profit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 4: Business Transactions

Some of ABC's transactions for the month of October are as follows.Which transaction,if any,is an expense for the month of October?

The business hires an office manager at $700 a week.The immediate effect on the accounting equation is to:

Accounts for Printers Pty Ltd are as follows: Cash \2 000 Creditors 10000 Accounts Receivable 11700 Office equipment 4500 Loan payable 14000 Motor vehicle 32000 Equity is:

When a customer eventually pays for items that have been purchased on credit,the transaction will affect:

A _____________ is a record in which each business transaction appears in date order.

Income has a (positive/negative)____________________ effect on Equity.

If: assets = \2 0000 liabilities = \1 1500 income = \3 6900 equity at start = \7 400 The amount of expense for the period was:

A business borrowed $20 000 from AXY Finance.The debit and credit entries for this transaction are:

Which of the following is not a business transaction?

Which of these would be classed as a transaction on credit?

The double entry accounting method requires each transaction to have at least ___________ effects on the accounting equation.

The effect on the accounting equation of the business paying $275 cash for mobile phone charges is:

The abbreviation for credit is _________.

Liabilities + equity should always be:

The effect on the accounting equation of the business purchasing a new motor vehicle on credit for $35 500 is:

Profit is added to opening equity to calculate ending _________.

The duality concept requires that each transaction must be recorded:

Occurrences that have the potential to affect the entity in some way,but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party are known as ______________ ______________.

If a transaction causes an asset account to increase,which of the following effects of equal amount may also occur?

For the cash account to decrease and the profit to decrease the transaction occurring could have been:

Introduction to Accounting

Business Sustainability

Business Structures

Balance Sheet

Income Statement and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Cost-Volume-Profit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Occurrences that have the potential to affect the entity in some way,but that will not be recorded as business transactions until an exchange of goods or services takes place between the entity and an outside party are known as .