GR.08. VEYBIZ QUIZ. Q. NO. 21 - 25

You own an ice-cream factory and you want to increase production and make 100 ice cream cones per day instead of 50. However, you only have one ice cream machine that can make 50 cones per day, and you don't have enough money to buy another machine right now. What should you do to increase production without buying a new machine?

• Work longer hours to use the machine twice in a day.

• Reduce the number of cones made each day.

• Charge more for each cone to increase revenue.

• Stop producing and save money until you can buy a new machine.

You need to create a balance sheet at the end of the week. Here's the information you have: Cash: $200 Inventory (unsold cookies): $50 Equipment: $300 Total liabilities (debts): $100 What is the total value of your assets, and what is your equity (the value you own after debts)?

• Assets = Liabilities (hence Equity = 0)

• Assets = 550$, Equity = 450$

• Assets = 450$, Equity = 550$

• Equity = 100$, Assets = Liabilities

Identifying Debit and Credit You bought office supplies for $100 and paid in cash. Which accounts will be debited and credited in this transaction?

• Debit Cash, Credit Office Supplies

• Debit Office Supplies, Credit Cash

• Debit Cash, Credit Supplies Expense

• Debit Supplies Expense, Credit Cash

Your business sold $500 worth of products to a customer on credit. How will you record this transaction?

• Debit Sales, Credit Debtors/Accounts Receivable

• Debit Debtors/Accounts Receivable, Credit Sales

• Debit Cash, Credit Sales

• Debit Sales, Credit Cash

Your business took a loan of $5,000 from the bank. How would you record this transaction?

• Debit Loan Payable, Credit Cash

• Debit Bank Loan, Credit Accounts Receivable

• Debit Cash, Credit Loan Payable

• Debit Sales, Credit Loan Payable