MCQs 1 To 10
1. Which of the following statements is incorrect?
2. On January 1st, 2009 an entity's balance sheet showed total assets of Rs. 750 and liabilities of Rs. 250. Owners' equity at January 1st was?
3. If the assets of a business are Rs. 100,000 and equity is Rs. 20,000, the value of liability will be?
4. Find out the missing value liabilities in an accounting equation with the help of given data?
5. The accounting equation should remain in balance because every transaction affects how many accounts?
6. Which of the following is not a correct form of the Accounting Equation?
7. Consider the following data?
8. Find out value of account receivable from following Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs. 77,000?
9. During a reporting period, a company’s assets increase by Rs. 80,000,000. Liabilities decrease by Rs. 20,000,000. Equity must therefore?
10. Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and capital (C)?
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MCQs 11 To 20
11. The liabilities of a business are Rs. 30,000; the capital of the proprietor is Rs. 70,000. The total assets are?
12. Which of the following account is affected from the drawings of cash in sole-proprietorship business?
13. Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts?
14. Mr. A provided the following information from his books of accounts at the end of the month. What is the amount of his capital?
15. Which of the following accounts will be used in equation, if the goods are sold on credit to Mr. Mahmood?
16. The favorable balance of profit and loss account should be?
17. Which of the following is not a satisfactory statement of the balance sheet equation?
18. Revenue of the business includes?
19. Which one of the following represents the expanded basic accounting equation?
20. Which of the following transactions would have no impact on stockholders' equity?
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Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
Sehgal, A., & Sehgal, D. (n.d.). Advanced Accountancy (Vol. I & II). New Delhi: Taxmann Publication Pvt. Ltd.
Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2008). Advanced Accountancy (Vol. I & II). New Delhi: S Chand & Co.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Accounting Principles (10th ed.). Hoboken: John Wiley & Sons, Inc.
Williams, M., & Bettner, H. (1999). Accounting (The basic for business decisions). (11th, Ed.) USA: Irwin McGraw- Hill.