Accounting equation and journals

If a business pays for stationery...

• owner's equity decreases

• owner's equity increases

• profit increases

• assets increases

If a business takes out a loan and the amount is deposited into the bank account of the business, the impact on the Accounting equation is as follows...

• Assets decrease and owner's equity increases

• Assets and liabilities decrease

• Assets and liabilities increase

• None of the above

duplicate receipts and cash register rolls are source documents of the

• cash payments journal

• cash journal

• cash receipts journal

• none of the above

the Analysis of Receipts column is used....

• to determine the amount that must be banked daily

• determine the total of all receipts for the month

• to fill up space

• occasionally

if the business pays for wages:

• debit bank, credit wages

• credit bank, debit wages

• debit wages only

• debit bank only

The business buys equipment and pays via EFT. The impact on assets are as follows:

• assets increase

• assets decrease

• the net effect on assets is 0

• none of the above

A business buys consumables with a marked price of R1600. At the till they get a 15% discount. The amount paid was...

• R240

• R1 360

• R1 840

• R1 599,85

Owner's equity can be calculated as follows:

• capital + drawings - expenses + income

• capital - drawings + income - expenses

• capital + drawings + income + expenses

• capital - drawings - income - expenses

The accounting correct term used for income received from services rendered is ...

• commission income

• services rendered

• current income

• cash income

If the owner increases his/her investment in the business by donating a vehicle:

• assets decrease

• owner's equity decreases

• owner's equity increases

• liabilities increase