Question
2. Which outie enemang accounting procedures are incorrect?
Accounts
Effects
Entries in account
Assets
Capital
Expenses
IV
Income
V
Liabilities
An increase
A decrease
An increase
A decrease
An increase
A decrease
An increase
A decrease
An increase
A decrease
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
A land III
B land V
C Il and III
D II, IV and V
3. Owner's equity will increase when
the business reports a net profit.
the business incurs a net loss.
¡I there is additional capital from the owner.
I the owner pays the business debt using his own money.
V the owner took business goods for personal use.
A Il only
c Il and V
B I, Ill and IV
D II, IV and V
4. Which of the following changes will NOT occur as a result of a business t
the bookkeeping records?
A Increase assets and increase liability
B Increase assets and increase capital
c Increase capital and increase liability
D Increase capital and decrease liability
Answer
D - Increase capital and decrease liability