Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

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

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

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

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

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

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

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

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

10. 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.

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

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

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

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

15. Total assets – Total liabilities =?