10. August 8, the business purchased new machinery for $40,000 on credit.

The correct journal entry is:

Select one:

DR Machinery CR Cash

DR Accounts payable CR Machinery

DR Machinery CR Capital

DR Machinery CR Accounts payable

2.

_______________________ is the characteristic applied to financial statements other than the statement of cash flows.

Select one:

Going concern

Accrual basis of accounting

Cash basis of accounting

Fair presentation and compliance with the standards

17.

Comparative information must be presented for all financial statement items unless an Accounting Standard of Interpretation permits otherwise.

Select one:

True

False

5.

A firm has currently $120,000 in total assets and $30,000 in total equity.

What is the firms total liabilities?

Select one:

$150,000

$90,000

$30,000

$120,000

13.

The legislation that is concerned with the formation, operation and dissolution of partnerships is the:

Select one:

Partnership Act

Business Law Act

Bankruptcy Act

Corporations Act

7.

On the first of July, ABC Pty Ltd paid rent in advance for 3 months. This is an example of:

Select one:

Accrued revenues

Accrued expenses

Unearned revenues

Prepaid expenses