Financial AccountingExercise-Accounting Equation and Double Entry Accounting

1. Total assets – Total liabilities =?

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

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

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

5. Which of the following is NOT correct?

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

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

8. 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 ?

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

10. Normally single entry book keeping is followed by the

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

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

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

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

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