Financial AccountingExercise-Accounting Equation and Double Entry Accounting

1. Which one of the following will result in increase in revenues?

2. Normally single entry book keeping is followed by the

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

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

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

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

7. Which of the following is NOT correct?

8. An expenditure whose benefit is finished or enjoyed immediately is called

9. 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 ?

10. What should be credited, if rent paid in cash?

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

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

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

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

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