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SingaporeAccountingQuick questions

The Accounting Environment and Equation

Quick questions on The accounting equation: N(A)-Level Principles of Accounts

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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A business has liabilities of \7\,000andownersequityof and owner's equity of \1500015\,000. Find total assets. [2 marks]
What is q2?
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State the two items that change when a business buys inventory for cash. [2 marks]
What is q3?
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Explain why receiving a bank loan does not change owner's equity. [2 marks]

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