AGR323 - CHAPTER 4

Which of the following does not affecting the owner's equity?

• purchase of fixed asset

• change in value of asset

• the business has profit or loss

• owner invest more money or withdraws money from business

Select ALL statements related to market basis balance sheet (more than 1 answer)

• asset value is equal to current market value minus selling costs

• asset value is equal to cost of producing the asset

• has higher asset value

• asset value is equal to purchase minus depreciation

The owner's equity will increase when ........

i - a business obtained net profit

ii - a business incurred net loss

iii - the owner withdrew cash from the company

iv- the owner brought in machinery to use in the business

• i and iv

• ii and iii

• i and iii

• ii and iv

Sun Farm bought seed and fertilizer on credit from One Nursery Sdn Bdh. What is the effect of this transaction?

• Increase in both asset and liability

• Increase in asset and decrease in liability

• Increase liability and decrease in asset

• Decrease in both asset and liability

Which of the following transaction is NOT a revenue?

• Performed a services worth RM3,000 on credit for Aliff and further services worth RM5,500 cash

• Purchased RM6,000 worth of drying fuel and RM3,000 worth of machinery lubricants

• Received subsidy of RM7,000 and interest of RM4,000

• Sold RM9,000 worth of grain crops for cash and a small tractor costing RM12,000 for RM20,000

Assets = $25,000 and Liabilities= $15,000 what is the value of capital?

• 5000

• 10000

• 40000

• 25000

The balance sheet is also known as

Cash= 1000, Bank = 2000, Accounts payable = 1500 and loans = 1000. What is the value of assets?

• 3000

• 2500

• 1550

• 4500

Which one is not belongs to liability?

• Mobile Phone Bill

• Bank Loan

• Bank Balance

• Owed To Friends

The value of all assets minus the value of all liabilities.

• Financial obligations

• Assets

• Net Worth

• Property