1. A disadvantage of a partnership is "mutual agency" which means:
2. a.each partner has the right to enter into contracts on behalf of the partnership.
3. b.each partner must contribute the same capital to the partnership.
4. c.only the partner with the highest cash contribution has the right to enter into contracts on behalf of the partnership.
5. d.profits will not be shared equally among the partners.
6. e.each partner has limited liability for the debts incurred on a contract entered into by any other partner.

1 points

QUESTION 3

1. Which of the following isnot truefor a private company?
2. a.It is regulated by the Australian Securities Exchange (ASX)
3. b.It is relatively easy to set up.
4. c.The company name includes the words "Pty Ltd"
5. d.It can have up to 50 shareholders.
6. e.All of the answers are true for a private company.

1 points

QUESTION 4

1. What is the effect on the accounting equation of the following transaction in October 2019: "Received $1,200 from a customer for services provided in September 2019"?
2. a.Increase one asset account and decrease another asset account
3. b.Decrease assets and increase owners' equity
4. c.Decrease assets and decrease liabilities
5. d.Increase assets and decrease liabilities
6. e.Increase assets and increase owners' equity

1 points

QUESTION 5

1. What is the effect on the accounting equation of the following transaction: "Paid the current month's mobile phone bill of $350"?
2. a.Increase assets and decrease liabilities
3. b.Increase assets and increase liabilities
4. c.Decrease assets and decrease owners' equity
5. d.Decrease assets and increase owners' equity
6. e.Decrease assets and increase liabilities

1 points

QUESTION 6

1. On 12thNovember, Benedict Pty Ltd provides a service to Kramer Pty Ltd with payment due within 30 days. On Benedict's balance sheet the amount owed by Kramer will be recorded as:
2. a.a prepayment
3. b.services income
4. c.an account receivable
5. d.an account payable
6. e.unearned revenue

1 points

QUESTION 7

1. Some of Brendan's transactions during the month of January are as follows. Which transaction is recognised as an expense for the month of January?
3. Advertisement published in the local newspaper in the month of January will be paid for in February.
4. Paid $10,000 off a loan obtained during December.
5. Paid 12 months insurance policy starting on February.
6. Paid a supplier $200 for goods purchased on credit in November.
7. Purchased a motor vehicle for $25,000 cash.

1 points

QUESTION 8

1. What is the effect on the accounting equation of the following transaction in October 2019: "The owner of the business withdrew $1,000 for personal use"?
2. a.Increase assets and decrease liabilities
3. b.Decrease assets and increase liabilities
4. c.Decrease assets and increase owners' equity
5. d.Decrease assets and decrease owners' equity
6. e.Increase assets and increase liabilities

1 points

QUESTION 9

1. The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues and expense accounts cover the financial year ending on that date.
2. Accounts payable14,000
3. Prepaid insurance
4. 2,500
5. Accounts receivable
6. 18,000
7. Property, plant and equipment
8. 150,000
9. Accumulated depreciation
10. 30,000
11. Retained earnings
12. 78,000
13. Cash
14. 6,000
15. Sales revenues
16. 122,000
17. Cost of sales
18. 35,000
19. Selling and admin expenses
20. 65,000
21. Interest expense
22. 4,000
23. Share capital
24. 50,000
25. Interest payable
26. 500
27. Supplies
28. 3,000
29. Inventory
30. 34,000
31. Unearned revenue
32. 2,000
33. Loan payablelong term
34. 40,000
35. Wages expense
36. 6,000
37. Patents and trademarks
38. 4,000
39. Wages payable
40. 3,000
42. What is the total non-current liabilities?
43. a.$43,000
44. b.$54,000
45. c.$90,000
46. d.$42,000
47. e.$40,000

1 points

QUESTION 10

1. The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues and expense accounts cover the financial year ending on that date.
2. Accounts payable
3. 14,000
4. Prepaid insurance
5. 2,500
6. Accounts receivable
7. 18,000
8. Property, plant and equipment
9. 150,000
10. Accumulated depreciation
11. 30,000
12. Retained earnings
13. 78,000
14. Cash
15. 6,000
16. Sales revenues
17. 122,000
18. Cost of sales
19. 35,000
20. Selling and admin expenses
21. 65,000
22. Interest expense
23. 4,000
24. Share capital
25. 50,000
26. Interest payable
27. 500
28. Supplies
29. 3,000
30. Inventory
31. 34,000
32. Unearned revenue
33. 2,000
34. Loan payablelong term
35. 40,000
36. Wages expense
37. 6,000
38. Patents and trademarks
39. 4,000
40. Wages payable
41. 3,000
43. What is the total current assets?
46. a.$63,500
47. b.$60,500
48. c.$67,500
49. d.$29,500
50. e.$61,000

1 points

QUESTION 11

1. In the five-step decision making approach,what is the cut off point?
2. a.The point at which a decision is made and start the implementation stage.
4. b.The point at which the cost to get more information exceeds its benefits
5. c.The point at which it cost you more to change your mind than to continue with an imperfect decision you made
6. d.The point at which a decision has to be made
7. e.The point at which there is no more alternatives identified

1 points

QUESTION 12

1. Alexander has started a small business making stamped t-shirts. He buys plain t-shirts and prints them with innovative designs. The following transactions occurred for the business during a recent period. How much is the value added to the stamped t-shirts?
2. Sales tocustomers$970
3. Cost of plaint-shirts450
4. Rent for theperiod225
5. Wages for theperiod180
7. a.None of the options is correct
8. b.$115
9. c.$970
11. d.$450
13. e.$520

1 points

QUESTION 13

1. Cash drawings
2. Loss on sale of equipment
3. Insurance expense
4. Bank loan paid
5. Cost of sales
6. Inventory purchased for cash
7. Collections from accounts receivable
8. Beginning cash balance
9. 2,200
10. 900
11. 100
12. 4,500
13. 15,000
14. 8,000
15. 16,400
16. 400
17. Insurance paid in advance
18. Cash paid for equipment purchased
19. Credit sales
20. Wages paid
21. Accounts payable paid
22. Depreciation expense
23. Cash sales
24. Ending cash balance
25. 1,200
26. 10,000
27. 18,000
28. 3,800
29. 450
30. 1,400
31. 23,000
32. 9,650
34. The effect on profits from these transactions is:
36. a.$4,800
38. b.$11,700
40. c.$11,900
42. d.Unable to be calculated from the information given
44. e.$19,800

1 points

QUESTION 14

1. Credit sales
2. Cash received from equipment sold
3. Rent paid in advance
4. Purchased supplies on credit
5. Cost of sales
6. Cash sales
7. Collections from accounts receivable
8. Beginning cash balance
9. 18,000
10. 4,500
11. 840
12. 1,200
13. 21,000
14. 12,000
15. 11,200
16. 800
17. Purchase of new computers
18. Proceeds from bank loan
19. Salaries paid
20. Rent expense
21. Suppliers paid
22. Depreciation expense
23. Dividends paid
24. Ending cash balance
25. 18,600
26. 5,000
27. 6,800
28. 420
29. 960
30. 1,800
31. 6,000
32. 300
33. The net cash flow from investing activities of the statement of cash flows prepared from the above information is
36. a.$4,500
38. b.$(18,600)
39. c.$(1,000)
40. d.$(8,100)
41. e.$(14,100)