Section.A: 20 Multiple Choices Questions (Choose the correct or the best answer) A trader's purchases on credit for April amounted to $3000. These purchases were subject to a trade discount of 10% and also a cash discount of 5% for accounts paid within 30 days. How much was entered in the purchases invoice? (Ignore GST) A $2,565 B. S2,700 C. $2.852 D. $3,000 . 2. The purpose of the ledger is to A record chronologically the day's transactions keep a record of documentation to support cach transaction c keep in one place all information about changes in specific account balances D. make sure that all assets and liability accounts have normal balances at all times 3. The owner's equity will reduce when: 1 a business obtains net profit II a business incurs net loss III the owner contributes additional capital IV the owner pays the business debt using his own pocket money. V the owner withdraws goods for his personal consumption A. II only B. II and V only C I, III and IV only D. II, IV and V only 4. Which of the following general ledger accounts should be classified as liabilities? Account receivables 11 Account payables III GST payable IV Drawings A. I and II B. II and III C. III and IV D. II and IV 5. If shareholders' equity increased by $5,000 and total liabilities increased by S45,000 during a period of time, then total assets A decrease by $40,000 B increase by $40,000 Cincrease by $45,000 D increase by 550,000 1 Page 2