ALL ONLINE TEST ACCOUTING 2.| ACCT MISC

ALL ONLINE TEST ACCOUTING 2.| ACCT MISCIf total sales is $90000, office expenses is $30000 and rent expense is $15000, profit or loss is which of the following? Selected Answer: $45000 profit Answers: $45000 profit $45000 loss $75000 loss $75000 profit Feedback: Profit equals $45000 = ($90000 – $30000 – $15000). Learning Objective 2.3 ~ outline the basic financial statements used in business to report to users for decision-making purposes. • Question 2 1 out of 1 points A chart of accounts is a: Selected Answer: listing of the ledger account titles and their account numbers. Answers: formal plan developed by management to estimate information flows through the computerised system. listing of the ledger account titles and their account numbers. list of accounts receivable and payable. chart showing the organisational structure of the entity. Learning Objective 3.2 ~ describe the accounting cycle used to record, classify and summarise transactions, including the use of ledger accounts and the general ledger. • Question 3 1 out of 1 points Ignoring GST, which of the following entries correctly records the purchase of land for $ financed by a $ cash deposit with the balance payable via a 20-year, 6% loan? Selected Answer: DR Land $; CR Bank $; CR Loan $ Answers: DR Land $; CR Bank $ DR Land $; CR Bank $ DR Land $; CR Bank $; CR Loan $ DR Land $; CR Loan $ Learning Objective 3.5 ~ discuss the purpose of a trial balance and how to prepare one. • Question 4 1 out of 1 points Select the account types for these items: ▪ Rent received in advance ▪ Mortgage ▪ Prepaid expenses ▪ Rates Selected Answer: Liability, liability, asset, expense Answers: Expense, liability, liability, equity Asset, equity, asset, expense Liability, liability, asset, expense Expense, liability, asset, liability Learning Objective 3.2 ~ describe the accounting cycle used to record, classify and summarise transactions, including the use of ledger accounts and the general ledger. • Question 5 In order to avoid disputes it is preferable for partners to: Selected Answer: have a written agreement. Answers: confirm their agreement with a handshake. share profits and losses equally.