Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

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

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

4. Which of the following is NOT correct?

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

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

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

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

9. Normally single entry book keeping is followed by the

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

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

12. Total assets – Total liabilities =?

13. 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.

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

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