Reference no: EM132968179

Problem 1: Rozie paid a bank loan of RM50,000. The effect on the accounting equation should be_________.

A)Decrease in asset by RM50,000 and increase in liability by RM50,000

B) Increase in asset by RM50,000 and decrease in liability by Rm50,0000

C) Increase in asset and liability by RM50,000

D) Decrease in asset and liability by RM50,000

Problem 2: A debit entry denotes_______.

A) Increase in equity

B) Decrease in expenses

C) Increase in income

D) Increase in assets

Problem 3: Which of the following transactions are cash transactions?

(i) Purchase of goods for RM200 payable in cash in one week's time

(ii) Writing a cheque for the purchase of a new computer

(iii) Receipt of a cheque from a customer for goods purchased today

(iv) Purchase of goods where payment is due tin three weeks' time

A) (i) and (ii)

B) (ii) and (iii)

C) (iii) and (iv)

D) (i) and (iv)