bsb110 mid sem exam

PRACTICE QUESTIONS FOR MID SEMESTER EXAMINATION TOPICS 1 5 8 questions from each topic QUESTION 1 The accounting equation could be expressed as A L - OE A - OE L (c) A OE - L OE A L None of the above QUESTION 2 The assumption that a business will continue to operate into the future is the basis of what Accounting Principle or Concept The accounting entity concept The reliability principle The cost principle The going concern principle The stable-monetary-unit concept QUESTION 3 Purchasing a motor vehicle on credit will have what affect on the accounts of a business Increase assets and increase owners equity Decrease owners equity and increase liabilities Increase assets and increase liabilities Decrease assets and decrease liabilities None of the above QUESTION 4 What type of Business Entity (or entities) is a separate accounting entity but not a separate legal entity Sole Trader Partnership Corporation Sole Trader and Partnership Partnership and Corporation QUESTION 5 At the beginning of the year Hannibals Elephant Tours had Assets of 40,000 and Owners Equity of 16,000. During the year, the business made a profit 3,000. Also, the owner invested 5,000 and withdrew 2,000 for personal use. During the year Assets increased by 14,000. What was the value of the liabilities at the end of the year 22,000 32,000 8,000 34,000 None of the above QUESTION 6 OT Company had the following transactions, among others, during April. Which transaction represented an expense during April (a) Purchased furniture for 8500 cash (b) Paid 3,300 in settlement of a loan obtained three months earlier (c) Paid a garage 500 for motor vehicle repair work performed in January (d) Purchased 30 of oil on account for the delivery truck. The account will be paid during June (e) None of the above QUESTION 7 A firm had Assets of 26,000 and Liabilities of 24,000 at the beginning of the year. During the year the firms revenue was 30,400 Capital Contributed 23,000 Capital Withdrawn