Financial AccountingExercise-Accounting Equation and Double Entry Accounting

Exercise-Accounting Equation and Double Entry Accounting

Double-entry accounting

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

7. 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.

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

12. Normally single entry book keeping is followed by the

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 


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