Choose the best answer. 3 marks
1.1. Gross profit is equal to:
A. Sales revenue − Cost of goods sold
B. Cost of goods sold − Sales revenue
C. Net profit + Expenses
D. Sales revenue + Cost of goods sold
1.2. The capital of the business would change as a result of:
A. A credit customer paying by cheque
B. Purchase of equipment on credit
C. The owner withdrawing cash for personal use
D. Payment to a supplier for goods purchased last month
1.3. Which book of prime entry is used when an entity purchases goods on credit?
A. Cash receipts book
B. Cash payments book
C. Sales day book
D. Purchases day book
1.4. If the assets of a business are 150,000 USD and liabilities are 60,000 USD, the value of equity will be:
A. 210,000 USD
B. 90,000 USD
C. 60,000 USD
D. 150,000 USD
1.5. Minh Co has the following transactions:
- Payment of 500 USD to Alpha Supplies for a cash purchase of goods. 
- Payment of 300 USD to Beta Ltd in respect of an invoice for goods purchased last month. 
What are the correct ledger entries?
A.
Dr Cash 800 USD
Cr Purchases 800 USD
B.
Dr Purchases 800 USD
Cr Cash 800 USD
C.
Dr Purchases 500 USD
Dr Trade Payables 300 USD
Cr Cash 800 USD
D.
Dr Cash 800 USD
Cr Trade Payables 300 USD
Cr Purchases 500 USD
1.6. Which of the following statements about double-entry bookkeeping is correct?
A. Every transaction affects only one account.
B. Total debits must always equal total credits for each transaction.
C. Assets are increased by credits and decreased by debits.
D. Expenses are increased by credits and decreased by debits.

Account	Amount	Account	Amount
Notes Payable	$18,000	Cash	$6,500
Owner's Capital	$35,000	Supplies	?
Equipment	$82,000	Rent Expense	$5,500
Salaries and Wages Expense	$42,000	Salaries and Wages Payable	$4,500
Owner's Drawings	$7,500	Accounts Payable	$24,000
Service Revenue	$96,000	Accounts Receivables	$11,000

Date	Transaction
June 1	Anna Lee contributed $50,000 cash to the business.
June 3	Purchased a delivery van from Nova Motors on credit for $8,000.
June 6	Purchased goods on credit for $26,000.
June 10	Paid employees $3,200 salary for the month.
June 12	Anna Lee introduced additional cash of $10,000 to the business.
June 15	Received cash from the bank as a short-term loan: $7,000.
June 18	The owner withdrew goods costing $300 for personal use.
June 22	Sold goods for 12,000 USD in cash; cost of goods sold was 7,500 USD.
June 25	Paid $8,000 cash to Nova Motors.
June 28	Paid office rent of $700 cash for the month.

Date	Description	Debit $	Credit $
...	...	...	...

Account name
Date	Particulars	Debit $	Date	Particulars	Credit $
...	...	...	...	...	...