Question

G K ? 80%-)- wed 2:41 P Fie Edit View History Bookmarks Window Help s Principles of Aceounting I Section 5 Spring 2019 co-Gordon State Colege uiz gordonstate.viw.ug.edu based on 45.00 Holly Fincher Attempt 1 Previous Page Next Page Page 8 of 30 Question 8 (1 point) Which one of the following best defines an inbernal event in terms of accounting Every type of transaction is an intermal evnt An event recognized in a set of fimancial statements A happening of coesequence to an entity An evont occurring entirely within an entity Next Page Page 8 of 30 Previous Page Submit Qulz of 30 quEStions saved AW P 5 7 8 9

Answer 1

8) Internal event; it can be defined as an event occurring entirely within an entity. it includes transaction such as inter-company transfers, prepaid expenses being encashed, change in assets, liabilities, revenues, expenses or owner's equity etc...

9) TRUE, all transaction refers to an external event. an accounting transaction requires two entity and only single entity events are known as an internal event and hence all the event which are a dual entity based comes under the category of external events hence the statement is true.

10) there is no opening balance as the company has just started

particulars	amount	particulars	amount
owners equity*	600000	land account	150000
		note payable	40000
		balance c/d	390000
	600000		600000

11) cash register tape is a source document for cash sales. it is also known as a receipt which is given to the customers on the sale of the commodity by the company

12) when cash sales are made it increases the cash (an asset) and increases an income (which is part of the stockholder's equity) hence the effect the transaction has is it increases both the assets and the stockholder's equity.

13) In T accounts there are two sides left and right and there are known as debit and credit respectively, hence an entry made to the right side of an account is known as credit.

20) when a truck is purchased or credit there is an increase in the asset as the truck is an asset and there is an increase in liability as it has been purchased for credit and we will have to pay off the vendor

.21) the accounts that increase the balance when credited are liabilities and incomes. In the question, the only liability or income is interest revenue (which is an income) hence interest revenue is the account which is increased by a credit entry.