Steve sold goods to Lee. Lee promises to pay the full amount two months after the date of sale. What type of transaction is this from Lee’s point of view?

• Cash sale

• Cash purchase

• Credit sale

• Credit purchase

A debit entry denotes:

• Increase in equity

• Decrease in expenses

• Increase in income

• Increase in assets

Which of the following is a capital expenditure?

• Wages paid to the machine operator.

• Expense on electric power used to run the machine.

• Rent of the premise where the machine is placed.

• Carriage paid on the purchase of a machine.

The left side of a T-Account is called

• Debit
• Credit
• Left Side
• Right Side

It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.

• Bookkeeping

• Journalizing

• Accounting

• Auditing

A list of accounts used by a business.

• accounting equation
• chart of accounts
• temporary accounts
• permanent accounts

Mr. Moonrise started a business for buying and selling of stationery with ₹5,00,000 as an initial investment. Of which he paid ₹1,00,000 for furniture, ₹2,00,000 for buying stationery items. The amount of capital will be

• ₹2,00,000

• ₹5,00,000

• ₹1,00,000

• ₹3,00,000

The normal balance for Cash is a 

• Debit
• Credit

Amount owed by a business

• liability
• asset
• capital
• account

______________________ is the transfer of journalized transactions to their accounts.

• Posting
• Recording
• Updating
• Journalizing