POA Term 1 Recap

Which nature does Expense and Assets fall under?

• Debit

• Credit

When business owes a supplier money, we will ______ trade payable.

• Debit

• Credit

Owner used business' car for personal use.

What are the two accounts affected?

• Capital & Motor Vehicle

• Drawings & Cash

• Drawings & Motor Vehicle

• Capital & Cash at bank

The business only records training fees and not the reputation of the business owner. This is according to the concept that states that..

• only transactions that can be measured in monetary value should be recorded.

• transactions should be recorded at historical cost.

• businesses are expected to go on infinitely.

• business and owners are two separate entities.

Discount allowed is an income.

• True

• False

To record discount given to credit customers, we debit _____ and credit ______.

• Trade Receivable, Discount received.

• Trade Receivable, Discount allowed.

• Discount received, Trade Receivable.

• Discount allowed, Trade Receivable.

A trade discount is given to encourage all of the below, except...

• customer loyalty

• prompt payment.

• bulk purchase

• customer patronage

The business paid for office space rental using cheques. The two accounts affected are:

• Rental expense, Cash in hand.

• Utilities expense, Cash in hand.

• Advertising expense, Cash at bank.

• Rental expense, Cash at bank.

What are the two accounting ethics?

• Integrity & objectivity.

• Honesty & objectivity.

• Unbiased & objective.

• Biased & accept bribes.

We have to record both the ______ and ______ when a business sells goods.

• Selling price

• Discount

• Cost price

• Trade Payable