Dual Effects of Transactions

The dual effects of transactions are...

• Value Received and Value Parted With

• Value on and Value off

• Income and Outcome

• Income and Expenses

Value received is the value or object...

• that the business received

• that the business gave in return

• that is outgoing from the business

• that the businessman gave to the business

Invested P1,500,000 cash in a computer rentals business. What is the value parted with?

• Capital

• Cash

• Business

• Service

Bought equipment worth P55,000 on account. What is the value received?

• Equipment

• Cash

• Accounts Payable

• Supplies

Purchased supplies on account worth P3,500. What is the value parted with?

• Accounts Payable

• Supplies

• Cash

• Materials

Received P60,000 cash from services rendered to customers. What is the value parted with?

• Service or Service Income

• Cash

• Capital

• Business

The businessman withdrew P15,000 cash from the business for personal use. What is the value parted with?

• Cash

• Withdrawal

• Service

• Capital

Bought a service vehicle on account worth P1.2 million. The value parted with is...

• Accounts Payable

• Car

• Service Vehicle

• Service

Value parted with is the value or object...

• given in return by the business

• received in cash form

• that stays in the business

• that never changes

What happens to a businessman's personal money when it is invested in a business?

• Ownership ia transferred to the business

• It doubles

• It is saved

• It is converted into a higher form of money