Which one of the following represents the expanded basic accounting equation?

7. Which one of the following represents the expanded basic accounting equation? A) Assets - Liabilities + Owners Capital +

Answer

Solution 7: Expanded accounting equation represents: Assets + Owner’s drawings + Expenses = Liabilities + Owner’s capital + Revenues Hence option B is correct. solution 8: An account will have a credit balance if “Credits exceed the debits” Hence option A is correct. solution 9: For basic accounting equation to stay in balance, each transaction recorded must “affect two or more accounts” Hence option B is correct. solution 10: At dec 31, 2012, accounts receivables balance is = $1,200 + $4,800 – $4,000 = $2,000 debit Hence option B is correct.

Note: As multiple questions are posted, i have answered more than required questions as per chegg policy, kindly post separate question for answer of remaining questions.

Leave a Comment