Accounting Equation Practice Questions Question 1 1. Commenced business with cash $500,000 2. Purchased goods $65,000. (Nothing mentioned about cash or Credit) How will this be treated? Cash or Credit If nothing mentioned thn it should always be treated as cash transaction. 3. Goods costing $ 40,000 sold at a profit of 40% for cada 4. Paid salary $10,000 5. Purchased goods $36,000 on credit 6. Paid Rent $700. (Expenses are always paid in cash if mentioned otherwise) Accounting Equation Practice Questions Question 1 1. Commenced business with cash $500,000 2. Purchased goods $65,000. (Nothing mentioned about cash or Credit) How will this be treated? Cash or Credit If nothing mentioned thn it should always be treated as cash transaction. 3. Goods costing $ 40,000 sold at a profit of 40% for cada 4. Paid salary $10,000 5. Purchased goods $36,000 on credit 6. Paid Rent $700. (Expenses are always paid in cash if mentioned otherwise)