Accounting Equation (11-20)

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

Rs. 30,000

None of given options

Rs.70,000

Rs.40,000

Correct! Wrong!

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

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

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

Assets = Revenues + Expenses – Liabilities

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

Correct! Wrong!

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

Cash and Account Receivable

Cash account and Owner’s equity

Account Payable and Owner’s Equity

Account Receivable and Owner’s equity

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!

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. 1,300

Rs. 1,200

Rs. 900

Correct! Wrong!

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

Assets - liabilities = owner’s equity

Assets - owner’s equity = liabilities

Assets = liabilities + owner’s equity

Assets = liabilities - owner’s equity

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!

Revenue of the business includes?

Both cash sales and credit sales

Credit purchases only

Credit sales only

Cash sales only

Correct! Wrong!

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

Dividends to stockholders

Purchase of land on credit

Net loss

Investment in cash by stockholders

Correct! Wrong!

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

Capital account

Expense account

Shareholder account

Liability account

Correct! Wrong!

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

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

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

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

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

The favorable balance of profit and loss account should be?

Revenue of the business includes?

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

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

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