Accounting Multiple Choice Question – 21 January 2024

Alex Trading purchased some goods on credit.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

1. Assets and liabilities
2. Assets and capital
3. Capital and liabilities
4. Assets only

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct -Assets will increase as Alex Trading has acquired inventory, and liabilities will increase as the goods were purchased on credit.
2. Not correct
3. Not correct
4. Not correct

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