1-

A business purchased and paid cash for goods/supplies valued at $7,900. Which of the following journal entries would be recorded if the company uses accrual basis accounting?

I Debit Purchases A/c with $7,900

II Credit Cash A/c with $7,900

Select one:

a. Both (I) and (II) are correct

b.

Only Statement II is correct

c.

Only Statement I is correct

d. Both (I) and (II) are incorrect

2-

Which of these statements is/are correct?

I An intangible asset is an asset with a physical form that is valuable because of the special rights it carries.

II An example of an intangible asset is a brand or trademark which represents distinctive identifications of products or services.

Select one:

a. Only I is correct

b. Both (I) and (II) are correct

c. Both (I) and (II) are incorrect

d. Only II is correct