Question 1

The true statement concerning the accounting period is:

Accepted Answer

A)  the length of the accounting period varies with the needs of users.
B)  the accounting period originates from the accounting equation.
C)  must be at least 6 months long.
D)  depends on which country the business is located in.E) All of the above
F) A) and B)

Question 2

A chart of accounts is a:

Accepted Answer

A)  planning device used by management to anticipate information flows through the accounting system.
B)  list of accounts receivable.
C)  chart showing the organisational structure of the firm.
D)  plan of the ledger listing account titles and their related numbers.E) None of the above
F) C) and D)

Question 3

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Accepted Answer

A)  DR buildings $100 000; CR bank $100 000
B)  DR buildings $300 000; CR bank $300 000
C)  DR buildings $300 000; CR bank $100 000; CR mortgage $200 000
D)  DR buildings $300 000; CR capital $300 000E) A) and C)
F) All of the above

Question 4

If a transaction causes an equity account to increase,which of these related effects may also occur?

Accepted Answer

A)  An increase of an equal amount in a liability account.
B)  An increase of an equal amount in an asset account.
C)  A decrease of an equal amount in an asset account.
D)  An increase of an equal amount in another equity account.E) A) and C)
F) None of the above

Exam 3: Recording Transactions

A chart of accounts is a:

Correct Answer
verified

The true statement concerning the accounting period is:

Correct Answer
verified

If a transaction causes an equity account to increase,which of these related effects may also occur?

Correct Answer
verified

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Correct Answer
verified

Exam 3: Recording Transactions

A chart of accounts is a:

Correct AnswerverifiedShow Answer

The true statement concerning the accounting period is:

Correct AnswerverifiedShow Answer

If a transaction causes an equity account to increase,which of these related effects may also occur?

Correct AnswerverifiedShow Answer

Select the entry which correctly records the purchase of a building for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20 year,8% mortgage.Ignore GST.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified