1.A customer purchased a holiday package worth $5000 from Oasis Holidays Ltd and paid a cash deposit of $1000. The balance is to be paid in two instalments of $2000 each over the next two months. The debit and credit entries for Oasis Holidays Ltd are:

Select one:

a.

debit cash $1000, debit accounts receivable $4000; credit sales $5000

b.

debit cash $5000, debit accounts receivable $1000; credit sales $4000

c.

debit sales $5000; credit accounts receivable $4000, credit cash $1000.

d.

debit cash $4000, debit accounts payable $1000; credit sales $5000

2.

An owner contributes $50 000 to expand the business. This transaction would:

Select one:

a.

increase expenses

b.

decrease income

c.

increase capital

d.

increase income

3.

The ICAA and CPA Australia:

Select one:

a.

are responsible for developing company regulations

b.

have nothing to do with setting company regulations but have a role in enforcing the regulations

c.

play no role in setting company regulation and have nothing to do with enforcing company regulation

d.

are involved in the enforcement of company regulations through the regulation of their members.

4.

The receipt of payment for an account receivable

Select one:

a.

affects assets and equity

b.

affects assets and liabilities

c.

has no effect on the accounting equation

d.

affects only the asset side of the accounting equation

Clear my choice