1. Whichof these wouldnotbe recorded as increasing income on 13 January?

a.Cash sale on 13January

b.Cash sale on 31January

c.Credit sale on 13 January

d.Sale where $2,000 is paid on 13January and the balance of $3,000is paid on 5February

Which of the following profit measures represents the raw operating earnings of an entity?

a.Earnings before interest,taxation,depreciation and amortisation(EBITDA)

b.profit after taxation

c.gross profit

d.earnings before interest and taxation (EBIT)

The statement of financial performance:

a.reports the assets, liabilities and equity at a specific point in time

b.reports the changes in assets, liabilities and equity over a period of time

c.summarisesthe change in retained earnings over a specific period of time

d.presents the income and expenses of an entity for a specific period of time

Which of the following transactions will be recorded as income?

a.Sold inventory on credit for $5,000

b.A J Smith pays $2,500for goods sold to him on credit last month

c.Owner contributes $8,000 of personal funds to the business

d.Borrow $50,000from the bank

A present obligation of the entity to transfer an economic resource as a result of past events' is a definition of:

a.liabilities

b.equity

c.expenses

d.income

Which of the following is a limitation of an entity's balance sheet?

a.the balance sheet is a historical representation of an entity's financial position and does not consider future growth potential

b.if the business is cyclical, the balance sheet prepared at the end of the financial period may not be representative of the financial position at other times during the financial period

c.the balance sheet may not include all items that create value for the entity

d.all of the options listed are considered limitations of an entity's balance sheet

Accounting profit measures:

a.the increase in thevalue of the entity over the period.

b.the increase in the bank balance over the period

c.the excess of income over expenses for the period

d.taxable income minus allowable deductions

The credit purchase of an asset at cost price:

a.leaves total assets constant

b.increases assets and increases liabilities

c.decreases assets and decreases liabilities

d.decreases assets and increases liabilities

Which of the following statements about the balance sheet isnottrue?

a.it is reported at a particular point in time

b.the total of the assets must equal the total of the liabilities plus equity

c.it represents the cash received and paid during the period

d.assets are listed in order of liquidity

The balance sheet usually reports the entity's financial position for both the current period and the previous period. This information is known as:

a.comprehensive information

b.financial reporting

c.narrative information

d.comparative information

It's a past test and i need the answer to practice.Thank u