Question 1

If total claims equal $950 000 and equity is $460 000,assets must be:

Accepted Answer

A)  $590 000 
B)  $490 000 
C)  $950 000 
D)  $460 000 
A)  $590 000 
B)  $490 000 
C)  $950 000 
D)  $460 000 C

Question 2

Some of MAC's transactions during the month of January are as follows.Which transaction,if any,is recognised as an expense for the month of January?

Accepted Answer

A)  Paid $10 000 off a loan obtained during December. 
B)  Paid a supplier $200 for goods purchased on credit in November. 
C)  Purchased stationery to the value of $125 on credit, to be paid for in February. 
D)  Purchased a motor vehicle for $25 000 cash. 
A)  Paid $10 000 off a loan obtained during December. 
B)  Paid a supplier $200 for goods purchased on credit in November. 
C)  Purchased stationery to the value of $125 on credit, to be paid for in February. 
D)  Purchased a motor vehicle for $25 000 cash. C

Question 3

Accounts for Saxophone Pty Ltd are as follows:
$ \begin{array}{lr}\text { Bank overdraft } & \$ 12000 \ \text { Accounts payable } & 8000 \ \text { Accounts receivable } & 36300 \ \text { Office equipment } & 14500 \ \text { Loan payable } & 34000 \ \text { Motor vehicle } & 27000\end{array} $
The amount for Equity is:

Accepted Answer

A)  $23 800 
B)  $47 800 
C)  $54 000 
D)  $77 800 
A)  $23 800 
B)  $47 800 
C)  $54 000 
D)  $77 800 A

Question 4

The duality concept requires that each transaction must be recorded:

Accepted Answer

A)  on both sides of the accounting equation. 
B)  in both the income statement and balance sheet. 
C)  in at least two different accounts. 
D)  first as an expense then as equity. 
A)  on both sides of the accounting equation. 
B)  in both the income statement and balance sheet. 
C)  in at least two different accounts. 
D)  first as an expense then as equity.

Question 5

A business borrowed $200 000 from GT Finance.The debit and credit entries for this transaction are:

Accepted Answer

A)  debit cash $200 000; credit loan from GT Finance $200 000. 
B)  debit loan from GT Finance $200 000; credit cash $200 000. 
C)  debit accounts payable $200 000; credit loan from GT Finance $200 000. 
D)  debit loan from GT Finance $200 000; credit accounts payable $200 000. 
A)  debit cash $200 000; credit loan from GT Finance $200 000. 
B)  debit loan from GT Finance $200 000; credit cash $200 000. 
C)  debit accounts payable $200 000; credit loan from GT Finance $200 000. 
D)  debit loan from GT Finance $200 000; credit accounts payable $200 000.

Question 6

The sale on credit of printer cartridges by Everything Computers is:

Accepted Answer

A)  a personal transaction. 
B)  a business transaction. 
C)  a business event. 
D)  not a business transaction. 
A)  a personal transaction. 
B)  a business transaction. 
C)  a business event. 
D)  not a business transaction.

Question 7

If the value of Assets is $165 000 and the value of Equity is $100 000,then Liabilities must be equal to ________________.

Accepted Answer

The answer of If the value of Assets is $165...

Question 8

A customer purchased a holiday package worth $5000 from Oasis Holidays Ltd and paid a cash deposit of $1000.The balance is to be paid in two instalments of $2000 each over the next two months.The debit and credit entries for Oasis Holidays Ltd are:

Accepted Answer

A)  debit sales $5000; credit accounts receivable $4000, credit cash $1000. 
B)  debit cash $1000, debit accounts receivable $4000; credit sales $5000. 
C)  debit cash $4000, debit accounts payable $1000; credit sales $5000. 
D)  debit cash $5000, debit accounts receivable $1000; credit sales $4000. 
A)  debit sales $5000; credit accounts receivable $4000, credit cash $1000. 
B)  debit cash $1000, debit accounts receivable $4000; credit sales $5000. 
C)  debit cash $4000, debit accounts payable $1000; credit sales $5000. 
D)  debit cash $5000, debit accounts receivable $1000; credit sales $4000.

Question 9

A cash payment of a telephone account results in a (debit/credit)_________ entry in the telephone expense account.

Accepted Answer

The answer of A cash payment of a telephone account...

Question 10

A supplier sold inventory to Bikes & Autos Pty Ltd valued at $9000.Bikes & Autos Pty Ltd paid half in cash and received 30 days credit for the balance owing.The debit and credit entries for Bikes & Autos Pty Ltd are:

Accepted Answer

A)  debit cash $9000; credit accounts receivable $4500, credit sales $4500. 
B)  debit inventory $9000; credit accounts payable $4500, credit cash $4500. 
C)  debit cash $4500, debit accounts receivable $4500; credit inventory $9000. 
D)  debit accounts payable $4500, debit cash $4500; credit inventory $9000. 
A)  debit cash $9000; credit accounts receivable $4500, credit sales $4500. 
B)  debit inventory $9000; credit accounts payable $4500, credit cash $4500. 
C)  debit cash $4500, debit accounts receivable $4500; credit inventory $9000. 
D)  debit accounts payable $4500, debit cash $4500; credit inventory $9000.

Question 11

Accounts for Minion Ltd are as follows:
$ \begin{array}{lr}\text { Cash } & \$ 8000 \ \text { Accounts payable } & 15000 \ \text { Wages payable } & 2000 \ \text { Inventory } & 8500 \ \text { Accounts receivable } & 4200 \ \text { Equipment } & 14500 \ \text { Loan payable } & 15000 \ \text { Motor vehicles } & 22000\end{array} $
The amount for Equity is:

Accepted Answer

A)  $32 000 
B)  $25 200 
C)  $57 200 
D)  $27 000 
A)  $32 000 
B)  $25 200 
C)  $57 200 
D)  $27 000

Question 12

A business invoices a customer $200 for maintenance services supplied on credit.The effect of this transaction on the accounting equation is:

Accepted Answer

A)  an increase in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income. 
B)  an increase in the asset cash $200 and an increase in profit or loss by $200 to record the services income. 
C)  an increase in the asset accounts receivable of $200 and a decrease in the asset cash $200 to record the amount paid. 
D)  a decrease in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income. 
A)  an increase in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income. 
B)  an increase in the asset cash $200 and an increase in profit or loss by $200 to record the services income. 
C)  an increase in the asset accounts receivable of $200 and a decrease in the asset cash $200 to record the amount paid. 
D)  a decrease in the asset accounts receivable $200 and an increase in profit or loss by $200 to record the services income.

Question 13

Blitz Pty Ltd has the following accounts and balances listed in its trial balance.Assuming all transactions have been entered correctly,the total debits and credits in the trial balance equal:
$ \begin{array}{lr}\text { Capital } & \$ 15000 \ \text { Cash } & 2000 \ \text { Accounts payable } & 7000 \ \text { Inventory } & 5500 \ \text { Accounts receivable } & 9500 \ \text { Property, plant and equipment } & 15000 \ \text { Loan payable } & 24000 \ \text { Motor vehicles } & 14000\end{array} $

Accepted Answer

A)  $31 000 
B)  $61 000 
C)  $43 500 
D)  $46 000 
A)  $31 000 
B)  $61 000 
C)  $43 500 
D)  $46 000

Question 14

When recording a sale of inventory on credit,the office clerk records the debit entry to accounts payable instead of to accounts receivable.This error will result in:

Accepted Answer

A)  an understatement of sales for the period. 
B)  no effect on profit for the period. 
C)  an overstatement of liabilities at the end of the period. 
D)  an understatement of equity at the end of the period. 
A)  an understatement of sales for the period. 
B)  no effect on profit for the period. 
C)  an overstatement of liabilities at the end of the period. 
D)  an understatement of equity at the end of the period.

Question 15

A business paid $6000 cash for the purchase of office furniture.The debit and credit entries to record this transaction are:

Accepted Answer

A)  debit cash $6000; credit office furniture $6000. 
B)  debit office furniture $6000; credit cash $6000. 
C)  debit office furniture $6000; credit accounts payable $6000. 
D)  debit office expenses $6000; credit cash $6000. 
A)  debit cash $6000; credit office furniture $6000. 
B)  debit office furniture $6000; credit cash $6000. 
C)  debit office furniture $6000; credit accounts payable $6000. 
D)  debit office expenses $6000; credit cash $6000.

Question 16

An example of a personal transaction would be:

Accepted Answer

A)  lunch paid for by the business. 
B)  buying school supplies for the owner's children on a company credit card. 
C)  paying wages to the owner's personal assistant. 
D)  an owner buying lunch with their own money. 
A)  lunch paid for by the business. 
B)  buying school supplies for the owner's children on a company credit card. 
C)  paying wages to the owner's personal assistant. 
D)  an owner buying lunch with their own money.

Question 17

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

Accepted Answer

A)  Classification of account (e.g. income, expense, asset, etc.). 
B)  Debit and credit columns. 
C)  Date. 
D)  Account name. 
A)  Classification of account (e.g. income, expense, asset, etc.). 
B)  Debit and credit columns. 
C)  Date. 
D)  Account name.

Question 18

Borrowing $10 000 from the bank to purchase new machinery will result in a (debit/credit)_________ entry to the asset machinery account and a (debit/credit)_________ entry to the liability bank loan account.

Accepted Answer

The answer of Borrowing $10 000 from the bank to...

Question 19

A common error that occurs when a transaction is recorded with two increases (or decreases)to one side of the accounting equation is known as a(n)__________ error.

Accepted Answer

The answer of A common error that occurs when a...

Question 20

An accountant sent an invoice to a customer,Matt Bridges,for $300 for preparing his business activity statement.The debit and credit entries are:

Accepted Answer

A)  debit cash $300; credit fees income $300. 
B)  debit cash $500; credit debtor M. Bridges $300. 
C)  debit debtor M. Bridges $300; credit fees income $300. 
D)  debit fees income $300; credit fees payable $300. 
A)  debit cash $300; credit fees income $300. 
B)  debit cash $500; credit debtor M. Bridges $300. 
C)  debit debtor M. Bridges $300; credit fees income $300. 
D)  debit fees income $300; credit fees payable $300.

If total claims equal $950 000 and equity is $460 000,assets must be:

Some of MAC's transactions during the month of January are as follows.Which transaction,if any,is recognised as an expense for the month of January?

Accounts for Saxophone Pty Ltd are as follows: Bank overdraft \ 12000 Accounts payable 8000 Accounts receivable 36300 Office equipment 14500 Loan payable 34000 Motor vehicle 27000 The amount for Equity is:

The duality concept requires that each transaction must be recorded:

A business borrowed $200 000 from GT Finance.The debit and credit entries for this transaction are:

The sale on credit of printer cartridges by Everything Computers is:

If the value of Assets is $165 000 and the value of Equity is $100 000,then Liabilities must be equal to ________________.

A customer purchased a holiday package worth $5000 from Oasis Holidays Ltd and paid a cash deposit of $1000.The balance is to be paid in two instalments of $2000 each over the next two months.The debit and credit entries for Oasis Holidays Ltd are:

A cash payment of a telephone account results in a (debit/credit)_________ entry in the telephone expense account.

A supplier sold inventory to Bikes & Autos Pty Ltd valued at $9000.Bikes & Autos Pty Ltd paid half in cash and received 30 days credit for the balance owing.The debit and credit entries for Bikes & Autos Pty Ltd are:

Accounts for Minion Ltd are as follows: Cash \ 8000 Accounts payable 15000 Wages payable 2000 Inventory 8500 Accounts receivable 4200 Equipment 14500 Loan payable 15000 Motor vehicles 22000 The amount for Equity is:

A business invoices a customer $200 for maintenance services supplied on credit.The effect of this transaction on the accounting equation is:

When recording a sale of inventory on credit,the office clerk records the debit entry to accounts payable instead of to accounts receivable.This error will result in:

A business paid $6000 cash for the purchase of office furniture.The debit and credit entries to record this transaction are:

An example of a personal transaction would be:

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

Borrowing $10 000 from the bank to purchase new machinery will result in a (debit/credit)_ entry to the asset machinery account and a (debit/credit)_ entry to the liability bank loan account.

A common error that occurs when a transaction is recorded with two increases (or decreases)to one side of the accounting equation is known as a(n)__________ error.

An accountant sent an invoice to a customer,Matt Bridges,for $300 for preparing his business activity statement.The debit and credit entries are:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Exam 4: Business Transactions

If total claims equal $950 000 and equity is $460 000,assets must be:

Some of MAC's transactions during the month of January are as follows.Which transaction,if any,is recognised as an expense for the month of January?

Accounts for Saxophone Pty Ltd are as follows: Bank overdraft \ 12000 Accounts payable 8000 Accounts receivable 36300 Office equipment 14500 Loan payable 34000 Motor vehicle 27000 The amount for Equity is:

The duality concept requires that each transaction must be recorded:

A business borrowed $200 000 from GT Finance.The debit and credit entries for this transaction are:

The sale on credit of printer cartridges by Everything Computers is:

If the value of Assets is $165 000 and the value of Equity is $100 000,then Liabilities must be equal to ________________.

A customer purchased a holiday package worth $5000 from Oasis Holidays Ltd and paid a cash deposit of $1000.The balance is to be paid in two instalments of $2000 each over the next two months.The debit and credit entries for Oasis Holidays Ltd are:

A cash payment of a telephone account results in a (debit/credit)_________ entry in the telephone expense account.

A supplier sold inventory to Bikes & Autos Pty Ltd valued at $9000.Bikes & Autos Pty Ltd paid half in cash and received 30 days credit for the balance owing.The debit and credit entries for Bikes & Autos Pty Ltd are:

Accounts for Minion Ltd are as follows: Cash \ 8000 Accounts payable 15000 Wages payable 2000 Inventory 8500 Accounts receivable 4200 Equipment 14500 Loan payable 15000 Motor vehicles 22000 The amount for Equity is:

A business invoices a customer $200 for maintenance services supplied on credit.The effect of this transaction on the accounting equation is:

When recording a sale of inventory on credit,the office clerk records the debit entry to accounts payable instead of to accounts receivable.This error will result in:

A business paid $6000 cash for the purchase of office furniture.The debit and credit entries to record this transaction are:

An example of a personal transaction would be:

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

Borrowing $10 000 from the bank to purchase new machinery will result in a (debit/credit)_________ entry to the asset machinery account and a (debit/credit)_________ entry to the liability bank loan account.

A common error that occurs when a transaction is recorded with two increases (or decreases)to one side of the accounting equation is known as a(n)__________ error.

An accountant sent an invoice to a customer,Matt Bridges,for $300 for preparing his business activity statement.The debit and credit entries are:

Introduction to Accounting and Business Decision Making

Accounting in Society

Business Structures

Balance Sheet

Statement of Profit or Loss and Statement of Changes in Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Budgeting

Costvolumeprofit Analysis

Costing and Pricing in an Entity

Capital Investment

Financing the Business

Performance Measurement

Filters

Borrowing $10 000 from the bank to purchase new machinery will result in a (debit/credit)_ entry to the asset machinery account and a (debit/credit)_ entry to the liability bank loan account.