Which of the following is not a business Transaction? Hiring new employees Purch
ID: 2510221 • Letter: W
Question
Which of the following is not a business Transaction?
Hiring new employees
Purchasing office supplies
Receiving fees for services
Incurring interest on a business loan.
The following is selected financial information for Safari Ltd as of December 31, 2015. Prepare the Balance Sheet
Building $200,000
Prepaid Rent 1,000
Inventories 8,000
Salary Unpaid 18,000
Land 110,000
Long term note payable 110,000
Equipment 50,000
Owner Equity 240,500
Cash 10,000
Account Payable 28,000
Account Receivable 15,000
Supplies 2,500
Resources controlled by the entity from which future economic benefits are expected to flow to the entity is the definition of
Equity
Assets
Income
Liabilities
Accounting entries for recording $100,000 cash introduced by the owner of a business are:
Credit cash account and debit owner’s account
Debit Cash Account and debit Investment in Business Account
Debit Cash Account and credit Investment Account
Debit Cash Account and Credit Capital Account
The basic Accounting equation is
Assets = Expense + Income
Assets = Expenses + Capital
Assets =Cash + Capital
Assets = Equity + Liabilities
Mrs Ted had the following balances
Machinery $20,000
Cash in Hand 2,000
Salary owing 8,000
Land and Building 200,000
Bank Loan 50,000
Accounts Payable 5,000
Account Receivable 10,000
Calculate her Equity
Which is the most important characteristic that all assets of a business have?
Long life of assets
Future economic benefits
Value of assets
Intangible nature of assets
Accounting entries for the payment of a loan received from Union Bank
Debit Cash account and credit Capital account
Debit Cash account and Credit Union Bank
Credit cash Account and Debit Capital Account
Credit Cash Account and Debit Union Bank Account
Find the value of ASSETS if Liabilities = $ 10,000 and Equity = $2,500
$4,000
$12,500
$7,000
$3,000
Double entry system is a
Reporting system
Financial Statement preparation system
Recording System
Debit and Credit determining system
The following balances were extracted from the financial records of Elizabeth Ltd at the close of business
On October 15, 2016. Prepare their Trial Balance
Account Receivable $4,000
Revenue 5,000
Inventory 2,000
Cash 1,500
Capital 3,000
Account Payable 2,000
Land 2,500
Explanation / Answer
1. Which of the following is not a business Transaction?
A.) Hiring a new employees ( monetery term is not included in this transaction so this transaction is not termed as a Business transaction)
2.) Balance sheet:
3.) Resources controlled by the entity from which future economic benefits are expected to flow to the entity is the definition of Assets.
4.) Accounting entries for recording $100,000 cash introduced by the owner of a business are:
Debit Cash Account and Credit Capital Account.
5.)The basic Accounting equation is: Assets = Equity + Liabilities
6.)
Equity=20000+200000+10000+2000-50000-5000-8000
Equity= 1,69,000
7.) Which is the most important characteristic that all assets of a business have?
A.) Future economic benefits
8.) Accounting entries for the payment of a loan received from Union Bank.
A.) Credit Cash Account and Debit Union Bank Account
9.) Double entry system is a:
Debit and Credit determining system
10.)
11.) The business bought computer equipment on account from a supplier for $3,000. Which account is to be debited?
A: Computer equipment.
12.)
13.) Which of the following is a liability?
A.) Accounts Payable
14.) Capital of a business decreases if there is an increase in Drawings.
15.) Identify the assets from the following:
A. Cash & Cash Equivalents.
16.) If the business owner withdraws cash for his/her personal use, what will be the effect on capital?
A.) Decreases in the Capital.
17.) What is the accounting entry to record the receipt of cash from a credit account customer?
A.) DR Cash/ CR account Receivable.
Liabilities Amt ($) Assets Amt ($) Share capital: Fixed Assets: Qwners equity 240500 Building 20000 Land 110000 Long term Liabilities: Equipment 50000 Long term note payable 110000 Current Assets: Current Liabilities: Inventories 8000 Accounts payable 28000 Accounts receivable 15000 Supplies 2500 Prepaid rent 1000 Salary unpaid 18000 Cash 10000 Profit & Loss A/C (Balancing Figure) 185000 399000 399000Related Questions
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