POA assessment 1 - term 2

An Asset is:

• Refers to items that are owned

• Refers to amounts that are owed to others

• Refers to amounts earned

Expenses are those items that are:

• Direct costs for producing goods

• Costs associated with operating a business

• All the company outflows

To journalize business transactions, refers .

• Recording them in the general journal

• Recording them in the general ledger

• Organizing the company paperwork

Accounts Payable is classified as a/an ___________ in the _____________.

• Current asset; Balance Sheet

• Current liability; Balance Sheet

• Expense; Income Statement

• Revenue; Income Statement

What is meant by accounts receivable?

• Money owed to a company by its debtors

• Money owed by a company to its creditors

• Money owed to a company by its employees

• Money owed by a company to its vendors

Started a business with $25000 cash

• Debit Cash /Credit Capital

• Credit Capital/Debit Cash

Bought office furniture by cheque $1500

• Credit Bank / Debit Office Furniture

• Debit Office Furniture/Credit Bank

Bought motor van paying by cheque $6000

• Debit Motor Van/Credit Bank

• Debit Bank/ Credit Motor Van

Bought machinery $7500 on credit for Planer Ltd.

• Debit Planer Ltd./ Credit Machinery

• Debit Machinery/ Credit Planer

Paid the amount owing to Planers Ltd $7500 by cheque

• Debit Bank/Credit Planers Ltd.

• Debit Planers Ltd/ Credit Bank