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SingaporeAccountingQuick questions

The Accounting Framework and Concepts

Quick questions on The accounting equation explained: H2 Principles of Accounting

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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State the accounting equation in both its basic forms. [2 marks]
What is q2?
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A business buys a \20\,000machine,paying machine, paying \50005\,000 cash and the rest on credit. Show the effect on the equation. [3 marks]
What is q3?
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Explain why a year's profit of \25\,000withdrawingsof with drawings of \90009\,000 increases closing equity by \16\,000$. [3 marks]

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