EVALUATI

ON
Write the letter of your answer in a sheet of paper

1.Payment of goods on account decreases ?

a. asset & liability b. asset & capital c. only asset d. owner’s
equity

2. What is the effect of investment made by the owner in Owner’s Equity?

a. increases b. decreases c. no effect d. none
of these

3.When owner’s equity is missing , the accounting equation should be

a. A = L + O.E b. L = O.E + A c. O.E = A - L d. O.E = L - C

4. Sales to a customers on account results to

a. increase in asset b. increase in liability c. decrease in asset d. no effect

5. It is considered as the resources of a business

a. liability b. owner’s equity c. asset d. none
Answer the exploratory exercises
on the photocopy that I will provide
to your group leader and email your
answers to sircutara@gmail.com on
or before 8:30 am, Monday.
February 7, 2022.
.