Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

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

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

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

5. Normally single entry book keeping is followed by the

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

7. Total assets – Total liabilities =?

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

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

10. 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 ?

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

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

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

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

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