◈ Oracle PrepSign Up Free
O-LevelAccountingThe fundamentals of accounting7707/12 · May/June 2020 · Q31 Mark

A trader bought new fixtures. He paid half of the purchase price in cash and agreed to pay the balance in two months' time. How does this purchase affect the accounting equation? assets owner's equity liabilities A decrease decrease no effect B decrease no effect increase C increase decrease increase D increase no effect increase

Adecrease decrease no effect
Bdecrease no effect increase
Cincrease decrease increase
Dincrease no effect increase

✓ Correct answer

D: increase no effect increase

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill The fundamentals of accounting and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2020 Paper 1 Variant 2, question 3.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

The fundamentals of accountingMay/June 20111m

Which is the accounting equation?

The fundamentals of accountingMay/June 20111m

Which is not a service business?

The fundamentals of accountingMay/June 20111m

Which is a direct cost?

Verification of accounting recordsMay/June 20121m

Which is an error of omission?

Accounting proceduresMay/June 20121m

John's financial year ends on 31 December. He pays his annual insurance premium on 1 July. He provided the following …

Accounting proceduresMay/June 20121m

Raminder maintains a provision for doubtful debts of 2½% of the trade receivables. On 1 January the balance on the pr…

← Browse all past-paper questions

© 2026 Oracle Prep