Reference no: EM132739456

Problem 1: Which of the following transactions would cause a change in owners' equity?

Multiple Choice

Option 1: Repayment of the principal on a bank loan.
Option 2: Purchase of a delivery truck on credit.
Option 3: Sale of land on credit for a price above cost.
Option 4: Borrowing money from a bank.

Problem 2: All of the following statements are true of double-entry accounting except:

Multiple Choice

Option 1: There is a need for both debit and credit entries for each and every transaction.
Option 2: Double-entry accounting can only be used with computer-based accounting systems.
Option 3: The total dollar amount of debit entries posted to the general ledger is equal to the dollar amount of the credit entries.
Option 4: Double-entry accounting allows us to measure net income at the same time we record the effect of transactions on the balance sheet accounts.