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1. Arielle W. bought furniture on credit from Chanel. Which of the following journal entries will be made for this transaction in Arielle W. books? (A) Dr. Furniture Cr. Cash (B) Dr. Purchases Cr. Arielle W. (C)Dr. Arielle W. Cr. Purchases (D)Dr. Furniture Cr. Arielle W. 2. The following two T-accounts illustrate a transaction Bank $800 Advertising expense $800 Which of the following statements describes the information given in accounts? (A) Advertising paid amounted to $800 (B)Advertising shows a decrease of $800 (C)Bank shows an increase of $800 (D)Bank deposits amounted to $800 3. Which of the following concepts use the rules 'every transaction affects two or more ledger accounts?' (A) Going concern (B) Double entry book-keeping (C)Money measurement (D)Periodicity 4. The purchase of a motor car on credit from Toy Automotive Company for use in a firm should be recorded as (A) Dr. Maintenance of vehicle expense Cr. Toy Automotive Company (B) Dr. Purchases Cr. Toy Automotive Company (C) Dr. Motor vehicle Cr. Toy Automotive Company (D) Dr. Motor vehicle Cr. Cash Item 5 refers to the following information Cash Capital $40 000 Drawings $10 000 Sales 15 000 Purchases 20 000 Balance c/d ??? 5. Which of the following figures represents the balance c/d for the above account? (A) $10 000 (B) $25 000 (C)$30 000 (D)$55 000
Detailed case study on a subject that deals with Business law and risk management.
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