Financial AccountingExercise-Accounting Equation and Double Entry Accounting

1. Any expense that gives benefit for a period of less than twelve months is called ________.

2. The IASB’s Conceptual Framework for Financial Reporting gives six qualitative characteristics of financial information. What are these six characteristics?

3. Consider the following data:
Assets $ 99,500 Owner’s equity $ 50,500, Liabilities $_______________

4. What should be debited, if Sales made to Mr. Jamed for cash?

5. What will be debited, if business purchased Vehicle on cash?

6. Which of the following is the example of current liability?

7. What should be debited, if Sales made for cash?

8. What will be debited, if business bought goods on credit from Mr. Ali?

9. What will be debited, if business sold goods for $10, 000 on credit?

10. Total assets – Total liabilities =?

11. Find out the missing value of an Accounting Equation with the help of given data:
Cash $100,000 Debtor $10, 000 Other Assets $ 1,000 Owner s equity $ 1, 000 Liabilities ?

12. Which of the following is NOT correct?

13. Any expense that gives benefit for a period of less than twelve months is called ________.

14. Which of the following statements about accounting concepts and the characteristics of financial information are correct?
1 The concept of accruals requires transactions to be reflected in the financial statements once the cash or its equivalent is received or paid.
2 Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.
3 Based on faithful representation, it may sometimes be necessary to exclude material information from financial statements due to difficulties establishing an accurate figure.

15. What will be debited, if Mohsin commenced business with cash?