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Accounting Equations
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Accounting Equations
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Accounting Equations
Assets are always equal to:
Capital
Liabilities
Liabilities + Capital
Liabilities + Accounts Payable
Author:
rikazzz
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Accounting Equations
A sole trader sells goods for cash for $500 which had cost of $300. Which elements of the accounting equation will change due to this transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
Author:
rikazzz
Comment
Accounting Equations
A sole trader borrows $10,000 from the bank. Which elements of the accounting equation will change due to this transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
Author:
rikazzz
Comment
Accounting Equations
Cash is received from Mr. Jones, a debtor of the business. It will affect:
Cash and debtors
Cash and owner’s equity
Cash and creditors
Cash and merchandise
Author:
rikazzz
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Accounting Equations
Resources minus capital equals:
Assets
Liabilities
Revenue
Equity
Author:
rikazzz
Comment
Accounting Equations
The capital of a sole trader will change as a result of:
A credit customer paying by cheque
Raw materials being purchased on credit
Non-current assets being purchased on credit
Personal petrol being paid for out of the business’s petty cash
Author:
rikazzz
Comment
Accounting Equations
Capital + Liabilities – Assets = ?
1
0
2
3
Author:
rikazzz
Comment
Accounting Equations
A cash discount is provided on:
Sales
Purchases
Prompt payment
Cash purchases
Author:
rikazzz
Comment
Accounting Equations
A sole trader purchases goods on credit. Which elements of the accounting equation will change due to the transaction?
Assets and liabilities
Assets and capital
Capital and liabilities
Assets only
Author:
rikazzz
Comment
Accounting Equations
The purpose of a financial statement that lists an entity’s total capital/liabilities is to show:
The financial performance of the entity over a period of time
The amount of the entity could be sold for in liquidation
The amount of the entity could be sold as a going concern
The financial position of the entity at a particular moment in time
Author:
rikazzz
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