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Business Transactions Their Analysis With Answers by Alagangwency

This document contains quizzes and solutions related to basic accounting concepts and journal entries. The quizzes cover topics like source documents, accounting cycle steps, and the effect of business transactions on accounts. The solutions show sample journal entries for events like investing cash, obtaining a loan, purchasing equipment and inventory, and making sales and payments. The journal entries debit and credit the appropriate accounts to properly record the financial transactions.

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571 views4 pages

Business Transactions Their Analysis With Answers by Alagangwency

This document contains quizzes and solutions related to basic accounting concepts and journal entries. The quizzes cover topics like source documents, accounting cycle steps, and the effect of business transactions on accounts. The solutions show sample journal entries for events like investing cash, obtaining a loan, purchasing equipment and inventory, and making sales and payments. The journal entries debit and credit the appropriate accounts to properly record the financial transactions.

Uploaded by

Hello Kitty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business Transactions and their Analysis

KEY ANSWERS TO QUIZ 1:


1. Journalizing
2. External events
3. Internal events
4. Simple journal entry
5. Sales invoice
6. Accounting cycle
7. Purchase order
8. Delivery receipt
9. Official receipt
10. Bank deposit slip

QUIZ 2: MULTIPLE CHOICE

1. Which of the following is not an example of a source document?


a. Delivery receipt
b. Sales invoice
c. Special journal
d. Bank statement

2. It is a report that a business sends to its customer listing the transactions with the customer
during a period, the payments made by the customer and any remaining balance due from the
customer. It also serves as a notice of billing.
a. Check
b. Bank statement
c. Delivery receipt
d. Statement of account

3. Which of the following is not an external event?


a. Rendering services to clients
b. Production of goods for sale
c. Purchase of raw materials for processing
d. Payment of notes payable

4. Journal entries are recorded in the journal


a. chromatically.
b. chronologically.
c. pharmaceutically.
d. cutely.

5. Which of the following is not one of the important parts of a journal entry?
a. Date

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b. Account titles and amounts to be debited and credited
c. A detailed narrative of the reason why management entered into the transaction
d. Short description of the transaction
e. All of these

6. A journal entry with more than one debit or more than one credit is called a
a. simple journal entry.
b. compound journal entry.
c. complicated journal entry.
d. sophisticated journal entry.

7. Which of the following accounts are affected when a business owner invests cash to the
business?
a. Cash and Accounts receivable
b. Cash and Owner’s capital
c. Cash and Sales
d. Accounts receivable and Owner’s capital

8. Which of the following accounts is decreased when a business settles accounts payable?
a. Cash
b. Accounts payable
c. Owner’s capital
d. a and b

9. Which of the following is the effect of purchasing inventory on account?


a. Inventory is increased and Cash is decreased
b. Inventory is increased and Accounts payable is increased
c. Inventory is increased and Accounts payable is decreased
d. Inventory is decreased and Accounts payable is increased

10. Which of the following is the effect of a sale of goods on account?


a. Accounts receivable is increased and Cash is decreased
b. Accounts receivable is increased and Accounts payable is increased
c. Accounts receivable is increased and Sales is increased
d. Accounts receivable is decreased and Sales is decreased

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SOLUTIONS TO QUIZ 3:

  JOURNAL
Date Account titles Debit Credit
Nov. 1, 20x1  Cash  2,000,000  
    Owner’s capital    2,000,000
  to record the contribution by the owner    
Nov. 5, 20x1  Cash  500,000  
    Note payable   500,000
  to record the loan obtained    
Nov. 8, 20x1  Equipment  1,000,000  
    Cash    1,000,000
  to record the acquisition of equipment    
Nov. 16, 20x1   Inventory  200,000  
  Cash   200,000
  to record the purchase of inventory    
Nov. 30, 20x1  Cash  300,000  
    Sales    300,000
  to record the sale of goods    

SOLUTIONS TO QUIZ 4:

  JOURNAL
Date Account titles Debit Credit
Dec. 1, 20x1 Accounts receivable  400,000  
    Sales    400,000
  to record the sale of goods    
Dec. 4, 20x1   Inventory  600,000  
  Accounts payable   600,000
  to record the purchase of inventory    
Dec. 9, 20x1  Cash  100,000  
  Accounts receivable    100,000
  to record the collection of accounts receivable    
Dec. 17, 20x1 Accounts payable 200,000
  Cash 200,000
  to record the payment of accounts payable
Dec. 28, 20x1 Owner’s drawings 120,000
  Cash 120,000
  to record the drawings of the owner

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