Accounting Equation (11-20)

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

Cash & Bank Loan

Bank & Debtors

Cash & Bank

Drawing & Cash

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

Cash and Account Receivable

Cash account and Owner’s equity

Account Payable and Owner’s Equity

Correct! Wrong!

Revenue of the business includes?

Both cash sales and credit sales

Cash sales only

Credit purchases only

Credit sales only

Correct! Wrong!

The favorable balance of profit and loss account should be?

Added in capital

Added in liabilities

Subtracted from liabilities

Subtracted from current assets

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.70,000

None of given options

Rs. 30,000

Rs.40,000

Correct! Wrong!

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

Net loss

Purchase of land on credit

Investment in cash by stockholders

Dividends to stockholders

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. 900

Rs. 1,200

Rs. 1,300

Correct! Wrong!

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

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

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

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

Assets = Revenues + Expenses – Liabilities

Correct! Wrong!

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

Expense account

Capital account

Shareholder account

Liability account

Correct! Wrong!

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

Assets - owner’s equity = liabilities

Assets = liabilities - owner’s equity

Assets = liabilities + owner’s equity

Assets - liabilities = owner’s equity

Correct! Wrong!

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

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

Revenue of the business includes?

The favorable balance of profit and loss account should be?

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 transactions would have no impact on stockholders' equity?

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

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

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

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

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