1: When goods that were sold on credit are returned the double entry is: A. B. C. D. Debit: Sales account Credit: Returns inward account. Debit: Returns outward account Credit: Trade receivables account. Debit: Returns inward account Credit: Trade receivables account. Debit: Trade receivables account Credit: Sales return account. Question 2: Which of the following transactions would cause one asset to increase and another asset to decrease? A. The business paid a creditor. B. The owner invested cash in the business. C. The business incurred an expense on credit. D. The business bought a computer with cash. Question 3: Which of the following statements is true? A. To record a decrease in capital, the capital account must be credited. ABCD To record a decrease in any given liability account must be credited. B. C. To record an increase in any given liability account that account must be debited. D. To record an increase in any given asset account that account must be debited. Question 4: A business received RM3,000 from a customer in payment of an amount owed. The effect of the transaction on the accounting equation was to: A. AB increase one asset, decrease another asset. increase an asset, increase owner's equity. B. C. D. decrease an asset, decrease a liability. increase an asset, increase a liability. A. B. C. Question 5: A Limited Liability Partnership (LLP) is: When a business is incorporated by law as a separate legal entity. When an individual starts a business on their own. When the partners are fully liable for the debts of the business. When 2 or 20 partners get together to form a business. D. Question 6: Which of the following statements is correct? A. B. C. D. Opening capital less drawings less capital introduced equals closing capital. Opening capital less losses less drawings equals closing capital. Opening capital less profits less drawings equals closing capital. Opening capital less closing capital equals drawings plus capital introduced