Question

Question 26

A paid dividend

Question 26 options:

	Credits cash and debits dividends
	Credits cash and dividends
	Debits cash and credits dividends
	Debits cash and dividends

Question 27

Performance of a service results in

Question 27 options:

	a credit to an asset and revenues
	a credit to an asset and a debit to revenues
	a debit to an asset and revenues
	a debit to an asset and a credit to revenues

Question 28

Taking out a loan results in

Question 28 options:

	a credit to assets and a debit to liabilities
	a debit to assets and a credit to liabilities
	a credit to assets and liabilities
	a debit to assets and liabilities

Question 29

Repayment of a loan results in

Question 29 options:

	a debit to an asset and to liabilities
	a credit to an asset and a debit to liabilities
	a debit to an asset and a credit to liabilities
	a credit to an asset and to liabilities

Answer 1

Question 26 :A paid dividend Involves Credit Cash and Debits Dividnds

Explanation: On the date of Declaration of Dividends Dividends is Debited and Dividends payable is Credited on the date of payment Dividends payable is Debited and Cash is Credited and the Net affect of both transactions results in credit cash and debit Dividends.

Question 27 . Option A Debit to an Asset and Credit to Revenues

On performance of a Service Asset i.e Cash or Account receivable is recogninsed and corresponding Income has to be credited

Question 28: Answer: Debit to Asset and Credit to Liabilities

Taking a loan results in Increase in cash and Increase in Liablity. Since cash is an Inflow asset has to be debited and Liability has to be credited

Question 29: A Credit to an Asset and Debit to Liability

Since repayment of Loan results in Outflow of cash Asset has to be CRedited and As a result of repayment the Liability is decreases so Liability has to be debited