Financial AccountingExercise-Accounting Equation and Double Entry Accounting

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

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

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

4. Total assets – Total liabilities =?

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

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

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

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

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

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

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

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

14. 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.

15. Which of the following is NOT correct?