Reference no: EM132782425

Question 1: The purpose of the ledger is to

Option 1: record chronologically the day's transactions.
Option 2: keep a record of documentation to support each transaction.
Option 3: maintain a separate account for each balance sheet and income statement accounts.
Option 4: make sure that all balance sheet and income statement accounts have normal balances at all times.

Question 2: Which of the following does not directly or indirectly affect the owner's Capital account?

Option 1: Paying an accounts payable
Option 2: Withdrawals by the owner
Option 3: Earning of revenues
Option 4: Incurring of expenses

Question 3: Which of the following transactions correctly maintains the equality in the accounting equation?

Option 1: To record collections on account, cash and accounts receivable are increased by P160,000.
Option 2: To record the purchase of computer equipment, computer equipment is increased and cash is decreased by P46,000.
Option 3: To record payment of notes, notes payable is decreased and cash is increased by P70,000.
Option 4: To record payment of rent, rent expense and cash are increased by P8.000.