Accounting Equation (11-20)

Which of the following account is affected from the drawings of cash in sole-proprietorship business?

Expense account

Capital account

Liability account

Shareholder account

Correct! Wrong!

Which one of the following represents the expanded basic accounting equation?

Assets = Revenues + Expenses – Liabilities

Assets + Dividends - Expenses = Liabilities + Common Shares + Revenues

Assets – Liabilities – Dividends = Common Shares + Revenues – Expenses

Assets = Liabilities + Common Shares + Dividends – Revenue – Expenses

Correct! Wrong!

The liabilities of a business are Rs. 30,000; the capital of the proprietor is Rs. 70,000. The total assets are?

Rs.40,000

Rs. 30,000

None of given options

Rs.70,000

Correct! Wrong!

Which of the following is not a satisfactory statement of the balance sheet equation?

Assets = liabilities - owner’s equity

Assets = liabilities + owner’s equity

Assets - liabilities = owner’s equity

Assets - owner’s equity = liabilities

Correct! Wrong!

Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?

Account Receivable and Owner’s equity

Account Payable and Owner’s Equity

Cash account and Owner’s equity

Cash and Account Receivable

Correct! Wrong!

Mr. A provided the following information from his books of accounts at the end of the month. What is the amount of his capital?

Rs. 200

Rs. 1,200

Rs. 900

Rs. 1,300

Correct! Wrong!

The favorable balance of profit and loss account should be?

Added in liabilities

Subtracted from liabilities

Added in capital

Subtracted from current assets

Correct! Wrong!

Revenue of the business includes?

Cash sales only

Both cash sales and credit sales

Credit sales only

Credit purchases only

Correct! Wrong!

Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts?

Cash & Bank Loan

Drawing & Cash

Bank & Debtors

Cash & Bank

Correct! Wrong!

Which of the following transactions would have no impact on stockholders' equity?

Net loss

Dividends to stockholders

Investment in cash by stockholders

Purchase of land on credit

Correct! Wrong!

Which of the following account is affected from the drawings of cash in sole-proprietorship business?

Which one of the following represents the expanded basic accounting equation?

The liabilities of a business are Rs. 30,000; the capital of the proprietor is Rs. 70,000. The total assets are?

Which of the following is not a satisfactory statement of the balance sheet equation?

Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?

Mr. A provided the following information from his books of accounts at the end of the month. What is the amount of his capital?

The favorable balance of profit and loss account should be?

Revenue of the business includes?

Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts?

Which of the following transactions would have no impact on stockholders' equity?

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