Business Accounting Volume 2 12e Frank Wood (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter (Complete And Verified Study material) (78pages) LEARNEXAMS

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the case of a sole trader . . . 1) A) earning profit does not affect capital. B) earning profit increases capital. C) capital can arise only by earning profit. D) earning profit reduces capital. 2) A school bought a computer, which it intends to use for general administration, and paid for it by cheque. Which of the following double-entries is the correct way to record this transaction? 2) A) Account to Debit Account to Credit Cash Computer B) Account to Debit Account to Credit Computer Bank C) Account to Debit Account to Credit Computer Cash D) Account to Debit Account to Credit Bank Computer 3) In the case of a retail garage, which of the following double-entries is the correct way to record the lodgement of hire purchase commission received as a result of selling cars? 3) A) Account to Debit Account to Credit Sales Bank B) Account to Debit Account to Credit Bank Commission C) Account to Debit Account to Credit Bank Sales D) None of the above. 4) When a firm pays one of its accounts payable by cheque, the effect on its assets and liabilities is: 4) A) Effect upon Assets Effect upon Liabilities Increase bank Increase Accounts payable B) Effect upon Assets Effect upon Liabilities Reduce bank Increase Accounts payable C) Effect upon Assets Effect upon Liabilities Reduce bank Reduce Accounts payable D) None of the above 5) In the case of a retail garage, which of the following double-entries is the correct way to record the payment, by cheque, of an electricity bill for the current accounting period? 5)