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. Normally single entry book keeping is followed by the

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

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

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

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

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

8. 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 ?

9. Total assets – Total liabilities =?

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

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

13. Which of the following is NOT correct?

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

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