Work out the impact (if any) on the major financial statements, caused by the following transactions on the day the transaction takes place. In each question answer by (No change) or (Down ) for Profit , Assets, Liabilities & Change in cash.

Q1) Purchase of a new piece of machinery for cash with an estimated useful life of 5 years:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q2) Purchase a new piece of machinery for cash with an estimated life of 6 months:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q3) Depreciation charged for the year of 15,000:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q4) Payment of rent of 1,000 relating to the next financial year:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q5) The receipt of an order for sales of 10,000 in 6 months' time. The customer has not paid for the order yet:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q6) News that a competitor has cut its prices on one of its major product lines. You also sell the product. Sales over the next 6 months of that product line will result in existing stock being sold at a loss of 20,000:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q7) Revaluation of the head office buildingwith the building increasing in valueby 1,000,000:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)

Q8) Customer who owes you 10,000 has gone into liquidation:

a) Profits (No change or Down)

b) Assets (No change or Down)

c) Liabilities (No change or Down)

d) Change in cash (No change or Down)