1. Which of the following is NOT an example of additional capital? A sole proprietor purchases a car through the bank account of the entity A sole proprietor brings a second-hand computer from his home to the office A sole proprietor transfers Php1,000 from his own bank account to the entity’s account A sole proprietor uses his own building as an office without receiving any rent 2. Which of the following is NOT an example of non-current assets? A second-hand computer used in office A van that is purchased through installments the total amount of which is not fully settled P40,000 cash A building bought by the entity 3. Suppose a debtor repays his debt of P50,000 by transferring the money into the bank account of the business. The effect of the transaction on the accounting equation would be: Both assets and liabilities increase by P50,000 Both assets and liabilities decrease by P50,000 Only assets decrease by P50,000 Assets and liabilities remain unchanged. 4. Which of the following transactions affects the total value of liabilities of a firm? Office equipment bought on credit Interest received from bank Goods purchased from suppliers by cash Goods sold to customers on credit 5. It refers to the process of transferring the debit and credit amounts from journals to ledger accounts Transferring Posting Closing Balancing off
1. Which of the following is NOT an example of additional capital? A sole proprietor purchases a car through the bank account of the entity A sole proprietor brings a second-hand computer from his home to the office A sole proprietor transfers Php1,000 from his own bank account to the entity’s account A sole proprietor uses his own building as an office without receiving any rent 2. Which of the following is NOT an example of non-current assets? A second-hand computer used in office A van that is purchased through installments the total amount of which is not fully settled P40,000 cash A building bought by the entity 3. Suppose a debtor repays his debt of P50,000 by transferring the money into the bank account of the business. The effect of the transaction on the accounting equation would be: Both assets and liabilities increase by P50,000 Both assets and liabilities decrease by P50,000 Only assets decrease by P50,000 Assets and liabilities remain unchanged. 4. Which of the following transactions affects the total value of liabilities of a firm? Office equipment bought on credit Interest received from bank Goods purchased from suppliers by cash Goods sold to customers on credit 5. It refers to the process of transferring the debit and credit amounts from journals to ledger accounts Transferring Posting Closing Balancing off
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 4DQ
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1. Which of the following is NOT an example of additional capital?
A sole proprietor purchases a car through the bank account of the entity
A sole proprietor brings a second-hand computer from his home to the office
A sole proprietor transfers Php1,000 from his own bank account to the entity’s account
A sole proprietor uses his own building as an office without receiving any rent
2.
Which of the following is NOT an example of non-current assets?
A second-hand computer used in office
A van that is purchased through installments the total amount of which is not fully settled
P40,000 cash
A building bought by the entity
3.
Suppose a debtor repays his debt of P50,000 by transferring the money into the bank account of the business. The effect of the transaction on the accounting equation would be:
Both assets and liabilities increase by P50,000
Both assets and liabilities decrease by P50,000
Only assets decrease by P50,000
Assets and liabilities remain unchanged.
4.
Which of the following transactions affects the total value of liabilities of a firm?
Office equipment bought on credit
Interest received from bank
Goods purchased from suppliers by cash
Goods sold to customers on credit
5.
It refers to the process of transferring the debit and credit amounts from journals to ledger accounts
Transferring
Posting
Closing
Balancing off
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