Part 1 (10 marks) (CLO1) Question 1: (2 marks) 1- Assets of a company would include: Sales revenus. 2-. a. b. C. d. Net Loss results when: a. b. C. Revenues Expenses. Revenues > Expenses. Revenues Expenses. 3- If the supplies of a company increased $4,000 during a period of time and cash in the company decreased $4,000 during the same period, what was the effect on the assets? a. Assets would have increased $4,000. b. Assets would have decreased $4,000. c. Assets would have remained the same. d. None of these. 4- Payment of a $500 Accounts payable : d. a. $500. Accounts payable. Unearned revenue. Accounts receivable. Increases an asset $500; decreases an asset Increases an asset $500; decreases a liability C. Decreases a liability $500; increases owner's equity $500. d. Decreases an asset $500; decreases a liability $500. 5- As of December 31, 2015, ABC Company has liabiliites of 50,000 and owner's equity of $30,000. What are the assets for ABC Company as of December 31, 2015? a. b. b. $500. Assets > Liabilities. C. d. $80,000. $20,000. - 50,000. $30,000. 6- If the assets of a business increased $90,000 during a period of time and its liabilities decreased $60,000 during the same period, equity in the business must have: a. Decreased $90,000. b. Decreased $90,000. c. Increased $150,000. d. Increased $60,000

Part 1 (10 marks) (CLO1) Question 1: (2 marks) 1- Assets of a company would include: a. Sales revenus. b. Accounts payable. c. Unearned revenue . d. Accounts receivable. 2-. Net Loss results when: a. Assets > Liabilities. b. Revenues = Expenses. c. Revenues > Expenses. d. Revenues $4,000 during a period of time and cash in the company decreased $4,000 during the same period, what was the effect on the assets? a. Assets would have increased $4,000. b. Assets would have decreased $4,000. c. Assets would have remained the same. d. None of these. 4- Payment of a $500 Accounts payable : a. Increases an asset $500; decreases an asset $500. b. Increases an asset $500; decreases a liability $500. c. Decreases a liability $500; increases owner's equity $500. d. Decreases an asset $500; decreases a liability $500. 5- As of December 31, 2015, ABC Company has liabilites of 50,000 and owner's equity of $30,000. What are the assets for ABC Company as of December 31, 2015? a. $80,000. b. $20,000. c. 50,000 . d. $30,000. 6- If the assets of a business increased $90,000 during a period of time and its liabilities decreased $60,000 during the same period, equity in the business must have: a. Decreased $90,000. b. Decreased $90,000. c. Increased $150,000. d. Increased $60,000 Part 2: (5 marks)_(CLO3) Question 4: (5 marks) Morgan Inc is a financial planning service. The account balances at December 31, 2018 are shown by the following alphabetical list: Instructions: 1- Prepare a trial balance for Morgan Inc at December 31, 2018. (2 marks) 2- Prepare the financial statments (Income statement, Owner's equity statement, balance sheet). ( 3 marks) Question 2: (1 mark) What does it mean when the accounting equation is in balance? Provide an example of a transaction that affects both sides of the equation. Question 3: (1 mark) Sigma Co. shows the following items: Equipment: 50,000; buildings: 500,000; accounts receivable: 6,000 ; accounts payable: 15,000 ; salaries payable: 5,000 ; cash: 5,000; supplies: 1,000 . Instruction: What is the amount of Sigma's Capital? Question 4 (6 marks)_(CLO2) Selected transactions for Mr. Ibrahim, civil engineer, in his first month of business. are as follows. a- Journalize the January transactions. (5 marks) b- Calcualte the balance for cash account. (1 mark)