Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

2. 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 ?

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

4. Consider the following data:
Assets $ __________ Owner’s equity 35,000 Liabilities 90,000

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

6. Which of the following is NOT correct?

7. Total assets – Total liabilities =?

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

9. 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.

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

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

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

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

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

15. When total liabilities are subtracted from total assets the remaining amount is known as