Ledger of a business is account and furniture account is account
Select the answer that shows the correct terms to (1) and (2) in the above statement in correct
order.
1. an income, an expense
2. an income, an asset
3. a liability, an income
4. an equity, an expense
12. Select the answer which correctly classifies the business organizations based on the objectives.
1. private sector businesses and public sector businesses
2. for profit businesses and large scale businesses
3. public sector businesses and large scale businesses
4. for profit businesses and not for profit businesses
13. Following is a transaction occurred in a business.
Purchasing a stock of goods of Rs. 50 000 in cash.
Because of this transaction in the business
1. Only the assets change
2. only the liabilities change
3. only the assets and liabilities change
4. all assets, liabilities and equity change
14. Chathuranga expects to start a furniture selling business hope to do the management by himself.
What is the most suitable business organization type for this?
1. A partnership
2. A sole proprietorship
3. an association
4. an incorporated company