Business Diploma Study Material with Solved Assignments and Essays - Desklib

Running Head: BUSINESS DIPLOMA 1
Business Diploma

BUSINESS DIPLOMA 2
Table of Contents
Assessment 1...................................................................................................................................4
Question 1....................................................................................................................................4
Question 2....................................................................................................................................4
Question 3....................................................................................................................................4
Question 4....................................................................................................................................5
Question 5....................................................................................................................................5
Question 6....................................................................................................................................5
Question 7....................................................................................................................................6
Question 8....................................................................................................................................6
Question 9....................................................................................................................................6
Question 10..................................................................................................................................6
Question 11..................................................................................................................................6
Question 12..................................................................................................................................7
Question 13..................................................................................................................................7
Question 14..................................................................................................................................7
Question 15..................................................................................................................................7
Question 16..................................................................................................................................8
Question 17..................................................................................................................................8
Question 18..................................................................................................................................8

BUSINESS DIPLOMA 3
Question 19..................................................................................................................................8
Question 20..................................................................................................................................9
Assessment 2...................................................................................................................................9
Assessment 3.................................................................................................................................10
Assessment 4.................................................................................................................................10
Assessment 5.................................................................................................................................11
References......................................................................................................................................13

BUSINESS DIPLOMA 4
Assessment 1
Question 1
The basic principle of double entry book keeping is that, for every transaction, there are
always two entries. One entry is known as the debit entry and the other is known as the credit
entry (Sangster, 2015). These entries are often displayed in the 'T' accounts. The debit here refers
to increase in an asset, increase in an expense, decrease in a liability or decrease in income
(Sangster, 2015). And the credit represents the decrease in an acid, decrease in an expense,
increase in a liability and increase in income (Sangster, 2015).
Question 2
In accounting method where the payment receipts are recorded during the time when they
are received, where as the expenses are recorded at the time when they are actually paid, is
known as cash accounting (Kieso, Weygandt & Warfield, 2010). It is also known as cash-basis
accounting because the recording of revenue and expenses is done only when cash is paid and
received. One of the advantages of cash accounting as that it is the simplest method of recording
transactions as there only related to cash. The main disadvantage of this method is that it is not
very accurate.
Question 3
Accrual basis of accounting is that accounting method where the transactions are
recorded as and when they occur, which means only at the time of their occurrence (Needles,
Powers & Crosson, 2013). The advantage of accrual basis of accounting is that it is very
accurate. The main disadvantage is that it requires the recording of transactions to be done only
at the time of their occurrence.