Question
1- First Choice Trading PJSC has provided the following information : Assets as on 31.12.2018Dhs340 million , Liabilities Dhs 200 million. As on 31.12.2019 ,
1- First Choice Trading PJSC has provided the following information :
Assets as on 31.12.2018Dhs340 million , Liabilities Dhs 200 million. As on 31.12.2019 , If the assets increased by Dhs 30 million , Liabilities decreased by DHs 25 million , Equity as on 31.12.2019 should be -
195
200
140
135
2- Which of the followingis not an internal users of accounting information ?
Employees
Vice President sales
Managing Director
External auditors
3- Which of the following item is example ofasset
Sale of goods
Rent ( for current month)
Advance received from customers
Advance given to suppliers
4-Which of the following is an example of Liability ?
Sale of goods
Rent ( paid for current month)
Equipment
Loan from Bank
5- Fundamental accounting equation is -
Assets = Liabilities + Equity
Which of the following statement correctly explain components of equity? Tick the most appropriate answer.
Equity simply means common stock
Equity = Contributed Capital + Retained Earnings ; Retained Earnings = Revenue-Expense - Dividend
Equity simply means common stock - treasury stock + Profit
Equity means common stock + profit
6-Which of the following describes trial balance
It measures profit of the business deducting expenses from income
It shows assets, liabilities and equity of the business
It shows cash flows of the business
It shows all ledger account balances classifying by debit and credit
7- First Choice PJSC has provided the following leader account balances : What should be total of debit or credit of the Trial Balance ( Amount in Dhs)?
Sales 560,000, Equipment 320,000, Bank Loan 200,000, Expenses 350,000, Common stock 120,000, Accounts Receivables 80,000 Inventory 120,000, cash 40,000, Accounts payable 30,000
910000
880000
920000
900000
8- Which of the followingUS company was found to be engaged in accounting fraud in 2001?
Enron accounting scandal
Wells Fargo Bank accounting manipulation
Worldcom scandal
Barnie Madoff Scandal
9-Which of the following is thee correct journal entry for the following transaction ?
XYZ PJSC raised $ 100 million by issue of common stock
CashDr.$ 100 million
Common Stock.Cr. $ 100 million
Common Stock. Dr. $ 100 million
Cash.Cr$ 100 million
It is not an accounting transaction. so journal entry is required
LiabilityDr.$ 100 million
CashCr$100 million
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