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

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

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

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

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

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

8. Normally single entry book keeping is followed by the

9. 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.

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

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

12. Which of the following is NOT correct?

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

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

15. Total assets – Total liabilities =?