I have just paid $12,000 in cash for the entire year's rental. 3 months have passed. How much rental expense have I incurred so far? What accounts should be involved?
Mr Chen's sales team just made a cash sale for the week which was worth $2,000. During that week, no other expenses were incurred. Mr Chen's company policy is to pay his salesmans' salary in cash on a monthly basis. Under the accrual accounting and cash accounting, his profit for the week is _______ & ________ respectively?
The Accounting Principle "Going Concern" suggests that all businesses are expected to _________?
Mr. Wong has been in the business of buying and selling of furnitures for the past 20 years. Recently, his delivery van has broken down and so he sought to buy a new one. In the month of February there were only two transactions. He paid $20,000 for a new delivery van with cash. In addition, he also purchased $40,000 worth of furnitures on credit in anticipation of a huge demand for his furnitures. Which of the following accounts should be debited/credited? The options given are not necessarily paired up in accordance to their transaction. | (i) Credit Delivery Van $20,000, Credit Fixtures & Furnitures $40,000 | (ii) Debit Delivery Van $20,000, Credit Cash $20,000 | (iii) Debit Fixtures & Furnitures $40,000, Credit Accounts Payable $40,000 | (iv) Debit Purchases $40,000, Credit Cash $40,000 | (v) Debit Purchases $40,000, Debit Delivery Van $20,000
Which of the following variations will cause the Accounting Equation to be correct? | (i) Assets +$5,000, Liabilities -$15,000, Owner's Equity -$20,000 | (ii) Assets -$6,000, Liabilities -$4,000, Owner's Equity -$2,000 | (iii) Liabilities -$4,000, Owner's Equity +$4,000 | (iv) Assets +$8,000, Owner's Equity -$8,000, Liabilities -$8,000
Which of the following are true? (i) Book-keeping is not a systematic recording in the books of accounts of business transactions of a company up to the preparation of Trial Balance | (ii) Accounting is the process of book-keeping and reporting in final accounts together with intepretation of the affairs of the business | (iii) Book-keeping is equivalent to accounting | (iv) Two of the common book-keeping system used by businesses are Single-entry and Double-entry book-keeping systems.