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 should be credited, if rent paid in cash?

3. 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.

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

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

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

7. 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 ?

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

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

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

11. Normally single entry book keeping is followed by the

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

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

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

15. Total assets – Total liabilities =?