Question 1

Which of the following transactions could explain the reason for a decrease in the cash account and a decrease in profit?

Accepted Answer

A)  Owner withdrawing cash from the business bank account. 
B)  Payment to a supplier for goods purchased on credit. 
C)  Payment of wages. 
D)  Loan repayment. 
A)  Owner withdrawing cash from the business bank account. 
B)  Payment to a supplier for goods purchased on credit. 
C)  Payment of wages. 
D)  Loan repayment.

Question 2

The ________________ ________________ is the accounting principle that requires separation of business transactions from any personal transactions of the owners.

Accepted Answer

The answer of The ________________ ________________ is the accounting principle...

Question 3

An owner pays her private motor vehicle insurance from the business bank account.This is:

Accepted Answer

A)  a business transaction. 
B)  a business event. 
C)  a personal transaction. 
D)  none of the above. 
A)  a business transaction. 
B)  a business event. 
C)  a personal transaction. 
D)  none of the above.

Question 4

Assets should always be:

Accepted Answer

A)  equal to liabilities. 
B)  greater than equity. 
C)  less than liabilities + equity. 
D)  equal to liabilities + equity. 
A)  equal to liabilities. 
B)  greater than equity. 
C)  less than liabilities + equity. 
D)  equal to liabilities + equity.

Question 5

For the accounting equation to balance each transaction must:

Accepted Answer

A)  affect the same number of asset and liability accounts. 
B)  always affect two accounts. 
C)  affect two or less accounts. 
D)  affect two or more accounts. 
A)  affect the same number of asset and liability accounts. 
B)  always affect two accounts. 
C)  affect two or less accounts. 
D)  affect two or more accounts.

Question 6

Which of the following rules is correct?

Accepted Answer

A)  Increases in assets are credits. 
B)  Increases in expenses are credits. 
C)  Increases in equity are credits. 
D)  Increases in liabilities are debits. 
A)  Increases in assets are credits. 
B)  Increases in expenses are credits. 
C)  Increases in equity are credits. 
D)  Increases in liabilities are debits.

Question 7

A _____________ account is used to summarise transactions that affect a particular item in the accounting reports.
e.g. sales.

Accepted Answer

The answer of A _____________ account is used to summarise...

Question 8

The numbers below represent the difference between the total debits and credits in a trial balance.Which of these numbers is most likely to be the result of a transposition error?

Accepted Answer

A)  185 
B)  236 
C)  173 
D)  252 
A)  185 
B)  236 
C)  173 
D)  252

Question 9

A business purchasing inventory on credit creates a liability known as:

Accepted Answer

A)  accounts receivable. 
B)  inventory. 
C)  supplies. 
D)  accounts payable. 
A)  accounts receivable. 
B)  inventory. 
C)  supplies. 
D)  accounts payable.

Question 10

A worksheet is a ___________ spreadsheet used by accountants to organise information and assist in the preparation of financial statements.

Accepted Answer

The answer of A worksheet is a ___________ spreadsheet used...

Question 11

A business paid $1255 for employees' wages at the end of the week.The debit and credit entries are:

Accepted Answer

A)  debit cash $1255; credit equity $1255. 
B)  debit wages expense $1255; credit cash $1255. 
C)  debit wages expense $1255; credit wages payable $1255. 
D)  debit equity $1255; credit wages expense $1255. 
A)  debit cash $1255; credit equity $1255. 
B)  debit wages expense $1255; credit cash $1255. 
C)  debit wages expense $1255; credit wages payable $1255. 
D)  debit equity $1255; credit wages expense $1255.

Question 12

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

Accepted Answer

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

Question 13

Which of the following statements concerning journals and ledger accounts is true?

Accepted Answer

A)  With a manual accounting system a business will normally show all transactions in one journal, the general journal. 
B)  They are no longer required due to the recording of transactions using electronic accounting packages. 
C)  In a manual accounting system the ledger is written up before the journal. 
D)  In a journal entry, the accounts to be debited are recorded before the accounts to be credited. 
A)  With a manual accounting system a business will normally show all transactions in one journal, the general journal. 
B)  They are no longer required due to the recording of transactions using electronic accounting packages. 
C)  In a manual accounting system the ledger is written up before the journal. 
D)  In a journal entry, the accounts to be debited are recorded before the accounts to be credited.

Question 14

The following accounts: equipment,accounts payable,sales revenue and inventory are classified as:

Accepted Answer

A)  equipment - asset; accounts payable - liability; sales revenue - income; inventory - asset. 
B)  equipment - expense; accounts payable - asset; sales revenue - asset; inventory - liability. 
C)  equipment - asset; accounts payable - asset; sales revenue - income; inventory - expense. 
D)  equipment - asset; accounts payable - liability; sales revenue - income, inventory - expense. 
A)  equipment - asset; accounts payable - liability; sales revenue - income; inventory - asset. 
B)  equipment - expense; accounts payable - asset; sales revenue - asset; inventory - liability. 
C)  equipment - asset; accounts payable - asset; sales revenue - income; inventory - expense. 
D)  equipment - asset; accounts payable - liability; sales revenue - income, inventory - expense.

Question 15

A business purchased inventory for $15 000,paying $8 000 cash and the balance of $7 000 due at the end of the following month.The debit and credit entries are:

Accepted Answer

A)  debit cash $8 000, debit accounts payable $7 000; credit inventory $15 000. 
B)  debit inventory $8 0000; credit cash $8 000. 
C)  debit inventory $15 000; credit cash $8 000, credit accounts payable $7 000. 
D)  debit inventory $8 000; credit cash $15 000, credit accounts payable $7 000. 
A)  debit cash $8 000, debit accounts payable $7 000; credit inventory $15 000. 
B)  debit inventory $8 0000; credit cash $8 000. 
C)  debit inventory $15 000; credit cash $8 000, credit accounts payable $7 000. 
D)  debit inventory $8 000; credit cash $15 000, credit accounts payable $7 000.

Question 16

Which of these is a business transaction?

Accepted Answer

A)  Negotiating trading terms with a new supplier. 
B)  Buying a new printer. 
C)  Meeting with the bank manager to extend the bank overdraft. 
D)  Hiring a new contractor to perform work for your business next week. 
A)  Negotiating trading terms with a new supplier. 
B)  Buying a new printer. 
C)  Meeting with the bank manager to extend the bank overdraft. 
D)  Hiring a new contractor to perform work for your business next week.

Question 17

On 27 January,Rose Pty Ltd provides a service to Lily Pty Ltd with payment due within 30 days.On Rose's balance sheet the amount owed by Lily will be recorded as:

Accepted Answer

A)  a prepayment. 
B)  an account receivable. 
C)  an account payable. 
D)  services income. 
A)  a prepayment. 
B)  an account receivable. 
C)  an account payable. 
D)  services income.

Question 18

Invoices,purchase orders,and credit card slips are examples of _____________ _____________ which provide written evidence to verify a business transaction.

Accepted Answer

The answer of Invoices,purchase orders,and credit card slips are examples...

Question 19

_________ is added to opening equity to calculate ending equity.

Accepted Answer

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

Question 20

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

Accepted Answer

The answer of The ___________ ___________ accounting method requires each...

Which of the following transactions could explain the reason for a decrease in the cash account and a decrease in profit?

The is the accounting principle that requires separation of business transactions from any personal transactions of the owners.

An owner pays her private motor vehicle insurance from the business bank account.This is:

Assets should always be:

For the accounting equation to balance each transaction must:

Which of the following rules is correct?

A _____________ account is used to summarise transactions that affect a particular item in the accounting reports. e.g. sales.

The numbers below represent the difference between the total debits and credits in a trial balance.Which of these numbers is most likely to be the result of a transposition error?

A business purchasing inventory on credit creates a liability known as:

A worksheet is a ___________ spreadsheet used by accountants to organise information and assist in the preparation of financial statements.

A business paid $1255 for employees' wages at the end of the week.The debit and credit entries are:

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

Which of the following statements concerning journals and ledger accounts is true?

The following accounts: equipment,accounts payable,sales revenue and inventory are classified as:

A business purchased inventory for $15 000,paying $8 000 cash and the balance of $7 000 due at the end of the following month.The debit and credit entries are:

Which of these is a business transaction?

On 27 January,Rose Pty Ltd provides a service to Lily Pty Ltd with payment due within 30 days.On Rose's balance sheet the amount owed by Lily will be recorded as:

Invoices,purchase orders,and credit card slips are examples of _ _ which provide written evidence to verify a business transaction.

_________ is added to opening equity to calculate ending equity.

The _ _ accounting method requires each transaction to have at least two effects on the accounting equation.

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

Which of the following transactions could explain the reason for a decrease in the cash account and a decrease in profit?

The ________________ ________________ is the accounting principle that requires separation of business transactions from any personal transactions of the owners.

An owner pays her private motor vehicle insurance from the business bank account.This is:

Assets should always be:

For the accounting equation to balance each transaction must:

Which of the following rules is correct?

A _____________ account is used to summarise transactions that affect a particular item in the accounting reports. e.g. sales.

The numbers below represent the difference between the total debits and credits in a trial balance.Which of these numbers is most likely to be the result of a transposition error?

A business purchasing inventory on credit creates a liability known as:

A worksheet is a ___________ spreadsheet used by accountants to organise information and assist in the preparation of financial statements.

A business paid $1255 for employees' wages at the end of the week.The debit and credit entries are:

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

Which of the following statements concerning journals and ledger accounts is true?

The following accounts: equipment,accounts payable,sales revenue and inventory are classified as:

A business purchased inventory for $15 000,paying $8 000 cash and the balance of $7 000 due at the end of the following month.The debit and credit entries are:

Which of these is a business transaction?

On 27 January,Rose Pty Ltd provides a service to Lily Pty Ltd with payment due within 30 days.On Rose's balance sheet the amount owed by Lily will be recorded as:

Invoices,purchase orders,and credit card slips are examples of _____________ _____________ which provide written evidence to verify a business transaction.

_________ is added to opening equity to calculate ending equity.

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

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

The is the accounting principle that requires separation of business transactions from any personal transactions of the owners.

Invoices,purchase orders,and credit card slips are examples of _ _ which provide written evidence to verify a business transaction.

The _ _ accounting method requires each transaction to have at least two effects on the accounting equation.