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CASH & CREDIT TRANSACTIONS

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

What are the 2 ways that an owner can invest in his/her business?

a)

Cash & Credit

b)

Cash & Property

c)

Cash & Owner's Equity

d)

Cash & Assets

2.

If a business buys furniture on credit, which 2 accounts are affected?

a)

Cash in Bank & Furniture

b)

Accounts Receivable & Furniture

c)

Assets & Furniture

d)

Accounts Payable & Furniture

3.

A business issues a check to purchase a computer for $1,500, what is the transaction?

a)

increase Accounts Payable - decrease Computers

b)

increase Computers - decrease Cash

c)

increase Cash - decrease Computers

d)

increase Computers - decrease Accounts Payable

4.

A sale on account affects which account?

a)

Accounts Receivable

b)

Accounts Payable

c)

Owner's Equity

d)

None of the above

5.

In accounting, cash and checks are dealt with in the same manner.

a)

True

b)

False

c)

Sometimes

d)

Never

6.

A automobile investment by an owner affects which accounts?

a)

Property & Owner's Equity

b)

Liabilities & Owner's Equity

c)

Assets & Owner's Equity

d)

Vehicles & Owner's Equity

7.

Cash is always affected when the business makes purchases.

a)

True

b)

False

8.

If Cash in Bank decreased, and Delivery Vehicles increased, what transaction happened?

a)

The company sold a vehicle.

b)

The company purchased a business vehicle.

c)

The company sold a vehicle on account.

d)

The company purchased a vehicle on account.