1- If a transaction worth $50 is not recorded, the trial balance will:

not be effected.

be out of balance by $100.

be out of balance by $50.

be out of balance by $200.

2-Some of MAC’s transactions during the month of January are as follows. Which transaction, if any, is recognised as an expense for the month of January?

Paid $10 000 off a loan obtained during December.

Purchased a motor vehicle for $25 000 cash.

Paid a supplier $200 for goods purchased on credit in November.

Purchased stationery to the value of $125 on credit, to be paid for in February.

3-A business pays $500 cash for their electricity bill. What effect does this transaction have on the accounting equation?

a decrease in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.

a decrease in the asset cash of $500 and an increase in profit or loss of $500 to record the electricity expense.

a decrease in the asset cash of $500 and a decrease in the liability accounts payable of $500.

an increase in the asset cash of $500 and a decrease in profit or loss of $500 to record the electricity expense.

4-An owner pays her private motor vehicle insurance from the business bank account. This is:

a personal transaction.

none of the options listed.

a business event.

a business transaction.