Uneb uce accounts 2006
SECTION A : 20 MARKS
1. A credit note is sent to a consumer in order to instruct him/her to
a) Cr. Creditor’s account
b) Dr. Creditor’s account.
c) Dr. Purchases account.
d) Cr. Purchases account.
2. What effect will the acquisition of a fixed asset on credit have on the balance sheet?
a) Increase owner’s equity.
b) Reduce owner’s equity.
c) Reduce total assets and total liabilities.
d) Increase total assets and total liabilities.