FAC1503 -- Unit 5 Questions and Correct Answers/ Latest Update / Already Graded

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FAC1503 -- Unit 5 Questions and Correct
Answers/ Latest Update / Already Graded
Four things to consider when making a double-entry transaction

Ans: Think about effect of entry on BAE
Identity components involved
Determine which increase and which decrease
Be sure amounts are equal


First step in accounting cycle

Ans: Completion of a source document


Two thing transactions may do

Ans: Create income or create expense
Affect assets/equity/liabilities


Transactions that affect only assets, equity and liabilities

Ans: Capital contributions
Getting a loan
Purchase an asset for cash
Buying asset on credit


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Payments to creditors
Withdrawals by owner


Transactions that affect income and expenditure

Ans: Income
Expenditure
Income in form of credit
Expenditure in form of credit


Transaction that only affects assets

Ans: Receiving payment from debtor


Subtract withdrawals from this category

Ans: Capital


General ledger

Ans: Contains transactions of assets, equity and liabilities


The contra ledger account

Ans: The other ledger account in the transaction

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