Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

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

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

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

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

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

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

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

9. Normally single entry book keeping is followed by the

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

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

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

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

14. Total assets – Total liabilities =?

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