Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

2. 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.

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

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

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

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

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

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

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

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

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

12. Normally single entry book keeping is followed by the

13. Total assets – Total liabilities =?

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

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