Question
1- If a transaction worth $50 is not recorded, the trial balance will: not be effected. be out of balance by $100. be out of
1- If a transaction worth $50 is not recorded, the trial balance will:
not be effected.
be out of balance by $100.
be out of balance by $50.
be out of balance by $200.
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?
Paid $10 000 off a loan obtained during December.
Purchased a motor vehicle for $25 000 cash.
Paid a supplier $200 for goods purchased on credit in November.
Purchased stationery to the value of $125 on credit, to be paid for in February.
3-A business pays $500 cash for their electricity bill. What effect does this transaction have on the accounting equation?
a decrease in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.
a decrease in the asset cash of $500 and an increase in profit or loss of $500 to record the electricity expense.
a decrease in the asset cash of $500 and a decrease in the liability accounts payable of $500.
an increase in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.
4-An owner pays her private motor vehicle insurance from the business bank account. This is:
a personal transaction.
none of the options listed.
a business event.
a business transaction.
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