Reference no: EM132782223

Problem 1: Which of the following items decreases the balance in the accounts receivable?

A. Cash paid to creditors

B. Discounts received

C. Credit sales

D. Discounts allowed

Problem 2: Which of the following statements is not true?

A. Expense is the amount incurred or paid in earning the revenue and running the business.

B. Expenses includes the cost of goods sold (that is, the cost of the goods or inventory that have been sold).

C. The expense account should be credited when an expense is incurred.

D. Wages, electricity and motor vehicle expenses are all examples of expenses.

Problem 3: If inventory was purchased for $2 288 inclusive of GST, what would the GST amount be?

A. $22.88

B. $229.00

C. $208.00

D. $20.80