Posted: January 6th, 2017
Question 5: In the Proficient-level question, you are asked to provide an example of a transaction that would have the listed effects in a firm’s financial statement. Here is the correct response to the first item listed, that serves as an example of an acceptable response (feel free to use this response … and respond to the other listed items similarly):
Increase an asset; decrease and asset: Example: Purchase a truck or office equipment for cash; another example would be receiving cash for payment on an accounts receivable.
(Examples of the various types of transactions listed in this question are given in the text in sections 2.8 and 2.9)
Question 6: This is a case scenario, and the specific answers are not directly given in the text. Learners should give their perspective to this case scenario based on their understanding of the ethics in play.
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