Exercise 06 - Identification - Nature OF Transaction PDF

Preview

Summary

Download Exercise 06 - Identification - Nature OF Transaction PDF

Description

EXERCISE 06 – ABM 11 IDENTIFICATION – Nature of Transaction Identify if the following transactions describe a revenue or an expense. Write R for revenue, E for expense, and N for neither. _____

1. Cost of electricity used in business operations.

_____

2. Professional fees collected by a doctor from patients for services rendered.

_____

3. Interest earned in a bank deposit account.

_____

4. Cost of supplies used in rendering services.

_____

5. Cash collected from customers for services to be rendered in the future.

_____

6. Telephone bill for communication services incurred in business operations.

_____

7. Dividends earned on investment placements.

_____

8. Cash paid for advance payment of insurance.

_____

9. Cost of advertising the services offered by the business.

_____ 10. Original cost of furniture used in the business. _____ 11. Amount collected from customers for services rendered last year. _____ 12. Cost of one year advance rental paid by the business. _____ 13. Interest earned on a promissory note but not yet collected. _____ 14. Amount of interest incurred on a promissory note but not yet paid. _____ 15. Interest collected in advance on a promissory note. _____ 16. Excess of carrying value over the selling price of a second hand asset sold. _____ 17. Amount paid for the principal of a loan obtained from the bank. _____ 18. Excess of selling price over the carrying value of a second hand asset sold. _____ 19. Decrease in the carrying value of a properly, plant, and equipment recorded through the depreciation process for the current year. _____ 20. Cost of office supplies bought at the start of the current year....