Q24 Company 1 sold goods to a customer on credit for $300,000. The goods were purchased in cash for $200,000. The customer subsequently returned goods with a sale value of $50,000 to the Company. Which of the following entries is consistent with the net effect of the above transactions? A. Debit goods for resale $300,000 and credit revenue $300,000 B. Debit purchases $150,000 and credit cash $150,000 C. Debit receivables $250,000, debit purchases $200,000, debit returns inward $50,000, credit revenue $300,000 and credit cash $200,000 D. Debit receivables $300,000, debit purchases 150,000 , credit revenue $250,000 and credit cash S200,000 Q25 Which of the following transactions is likely to give rise to a non-current asset? A. Legal fees paid for a lawsuit brought against by a customer B. Annual lease payments for an office room for 2 years C. Fees paid to acquire a customer list from a marketing company D. Annual remuneration package for a CEO in a highly reputable ple Q26 Which of the following is a record of all the account balances at the year-end, and is used to prepare the final accounts? A. A statement of profit or loss B. A statement of financial position C. A trial balance D. A statement of cash flows Q27 If liabilities increase by 3,000 during a given period and owner's equity decreases by 1,000 during the same period, the assets must have: A. Decreased by 2,000 B. Decreased by 3,000 C. Increased by 2,000 D. Increased by 3,000