Financial AccountingExercise-Accounting Equation and Double Entry Accounting

Exercise-Accounting Equation and Double Entry Accounting

Double-entry accounting

1. Total assets – Total liabilities =?

 
 
 
 

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

 
 
 
 

3. 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 ?

 
 
 
 

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

 
 
 
 

5. An expenditure whose benefit is finished or enjoyed immediately 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. Which of the following is the example of current liability?

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

13. Which of the following is NOT correct?

 
 
 
 

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

 
 
 
 

15. 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.

 
 
 
 


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