Directions: Draw ? on the blank if the statement is TRUE and ☹ if FALSE. I. 1. Bookkeeping is also known as Basic Accounting. 2. Journal is the book of original entry. 3. Ledger is the book of final entry. 4. Debit entry of amount is written in the right column. 5. Credit entry of amount is written in the left column. 6. Cash is a liability of the entity. 7. Equipment is a current asset. 8. Cash is the most liquid asset. 9. If RBO invests a cash asset in his company, he needs to debit capital and credits cash. 10. Asset is something owed by the business.
Directions: Draw ? on the blank if the statement is TRUE and ☹ if FALSE.
I.
1. Bookkeeping is also known as Basic Accounting.
2. Journal is the book of original entry.
3. Ledger is the book of final entry.
4. Debit entry of amount is written in the right column.
5. Credit entry of amount is written in the left column.
6. Cash is a liability of the entity.
7. Equipment is a current asset.
8. Cash is the most liquid asset.
9. If RBO invests a cash asset in his company, he needs to debit capital and credits cash.
10. Asset is something owed by the business.
II. Explain
1. The following excerpt was taken from an article published on April 7, 2015 in the Philippine Star.
" Ayala Land Inc. (ALI) has started the ball rolling for its planned Php7,000,000,000 (billion) debt sale to partially financed its record Php100,000,000,000 (billion) capital expenditures (capex) this year."
Discuss the possible effects of this financing on the capital structure of Ayala Land, Inc. How much this financing affect the statement of profit or loss of Ayala Land, Inc.
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