Test your learning about ‘transaction analysis’ chapter by answering 10 short questions given below. We suggest you try to answer each question yourself before clicking on the ‘see answer’ button.
If you find difficulty in answering these questions, read ‘transaction analysis‘ chapter thoroughly from explanation section of the website.
1. What are two popular approaches to classify accounts?
2. What are the types of accounts according to traditional classification (or British approach)?
3. What are real accounts?
4. What are nominal accounts?
5. What are personal accounts?
6. What are different types of accounts according to accounting equation approach (also known as American approach)?
7. What is meant by debiting or crediting an account?
8. What is meant by the analysis of business transaction?
9. Mr. Sam invests $50,000 cash in his business. How would you analyze this transaction?
10. Mr. Sam pays $950 cash to a creditor and receives $50 cash discount. How many accounts are involved in this transaction?