MCQ 1 Which of the following accounts is not reported in inventory? a. Raw materials. b. Finished goods. c. Building. d. Supplies. MCQS 2 AG Inc. made a €10,000 sale on account with the following terms: 1/15, n/30. If the company uses the gross method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? a. Debit Accounts Receivable for €9,900 b. Debit Accounts Receivable for €9,900 and Sales Discounts for €100 c. Debit Accounts Receivable for €10,000 d. Debit Accounts Receivable for €10,000 and Sales Discounts for €100

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is