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Accounts Receivable and Increase

Satisfactory Essays

Question 1
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The effect on the accounting equation of the business buying a computer worth $900, paying $450 cash and owing $450 to be paid in 30 days' time is:
Select one:
a. decrease the asset computers, increase the asset cash, decrease the liability accounts payable.
b. increase the asset computers, increase the asset cash, decrease the liability accounts payable.
c. increase the asset computers, decrease the asset cash, increase the liability accounts payable.
d. increase the asset computers, decrease the asset cash, decrease the liability accounts payable.
Question 2
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If only one side of a $100 transaction is …show more content…

decreases assets and increases liabilities.
c. decreases assets and liabilities.
d. decreases assets and equity.
Question 5
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Which of these would be classed as a transaction on credit?
Select one:
a. Payment of salaries.
b. Sale of goods on account.

Question 6
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An example of a personal transaction would be:
Select one:
a. buying an iPad for the owner's children on a company credit card.
b. lunch paid for by the business.
c. an owner buying flowers with their own money.
d. the business hiring a personal assistant.
Question 7
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For the cash account to decrease and the profit to decrease, the transaction occurring could have been a/an:
Select one:
a. agreement with a supplier on the value of the next delivery.
b. purchase of a new printer for the owner's home computer.
c. payment of an electricity bill.
d. repayment of a loan.
Question 9
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An owner pays her private motor vehicle insurance from the business bank account. This is:
Select one:
a. none of the above.
b. a business event.
c. a business transaction.
Question 10
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Evidence that would not be of help in recording a transaction would be:
Select one:
a. an

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