A business pays RM6,000 to a supplier for an amount owed to him. The effect of the transaction on the accounting equation is: A. increases in assets and other assets decrease B. decreases in assets and increases in other assets C. a decrease in assets and a decrease in liabilities D. increase in assets and increase in owners equity.

The total assets and liabilities at the beginning and end of the period are as follows; for the current year the owner has made a withdrawal of RM30,000 for his own use and has put in cash of RM25,000 as additional capital. Assets Liabilities Beginning of the year 290,000 190,000 End of year 355,000 220,000 The amount of net income for the year is: A. RM5,000 B. RM25,000 C. RM35,000 D. RM40,000

If the revenue is RM70,000, expenses RM59,000, withdrawals RM25,000, the amount of net income or loss is: A. net income of RM11,000 B. net income of RM36,000 C. net loss of RM14,000 D. net income of RM70,000

Cash receipts from customers settling their debts will be recorded with: A. Cash debit and credit Accounts payable B. Cash debit and credit Accounts receivable C. Cash debit and Fee credit earned D. Cash debit and credit Spending fees

The first step in recording a transaction in a two -column journal is: A. write a description B. record the debit C. record credit D. record the date

A takeover account by a sole trader will be debited when: A. the owner invests cash B. the owner withdraws cash C. when the liability is paid D. when expenses are paid

Which of the following errors will cause an imbalance of the total trial balance. A. error in calculating account balance B. does not record a transaction C. record one transaction more than once D. transferring a transaction to the wrong account

Crediting cash will result in: A. increase owner equity B. an increase in assets C. a decrease in liabilities D. an increase in yield

When the rent is paid in advance for the next few months, the debit is: A. one spending account B. capital account C. liability account D. an asset account

When payment is made to a supplier who supplies goods purchased on credit, the debit is: A. asset accounts B. liability account C. capital account D. spending accounts