This paper circulates around the core theme of Land is purchased by a business for $100,000. The company pays for the land by a cash payment of $20,000 and promised to pay the remaining amount at a later period. What is net effect of this transaction on the business’s accounting equation? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
1)
Land
is purchased by a business for $100,000. The company pays for the land by a
cash payment of $20,000 and promised to pay the remaining amount at a later
period. What is net effect of this transaction on the business’s accounting
equation?
a.
Assets
increase by $100,000; liabilities increase by $80,000.
b.
Assets
increase by $100,000; expenses increase by $20,000; liabilities increase by
$80,000.
c.
Assets increase
by $80,000; liabilities increase by $80,000.
d.
Assets
increase by $100,000; liabilities increase by $100,000.
2)
Which
of the following is a collection of all the accounts, the changes in those
accounts, and their balances?
a.
source
document
b.
journal
c. ledger
d.
trial
balance
3)
An
expense that has been incurred but not yet paid is called a(n):
a.
accrued
revenue.
b.
prepaid
expense.
c.
unearned
revenue.
d. accrued expense.
4)
The
time span during which cash is paid for goods and services, which are then sold
to customers from whom the business collects cash is called the:
a.
production
time.
b.
operating
cycle.
c.
accounting
cycle.
d. sales time.
5) Which of the
following accounts are included in an income statement?
a. Land, Salaries
Payable
b. Owner’s Name,
Capital, Owner’s Contribution
c. Furniture, Cash
d.
Service Revenue, Utilities
Expense
6)
Which
of the following is an example of an intangible asset?
a.
Equipment
b.
Plant
c.
Property
d. Copyright