Question
1. ________is a separate legal entity that Total capital can be divided in many shares 1. Partnership 2. Sole proprietorship 3. Company 4. Non-profit organization
1.
________is a separate legal entity that Total capital can be divided in many shares
1. Partnership |
2. Sole proprietorship |
3. Company |
4. Non-profit organization |
2.
___________=Gross profit < Operating Expenses
1. Net Profit |
2. Gross Profit |
3. Net Loss |
4. Gross Loss |
3.
Whichof the following account summarizes the profitability of business for aspecific accounting period?
1. Profit & Loss account |
2. Cash flow statement |
3. Receipt & Payment account |
4. Balance Sheet |
4.
Abusiness event which can be measured in terms of money and must be recorded inbooks of accounts is called:
1. Condition |
2. Transaction |
3. Information |
4. Record |
5.
Anasset must be _______ by the business to be shown as an asset in its"balance sheet"
1. Possessed |
2. Owned |
3. Controlled |
4. Used |
6.
Entriesto expenses such as Rent Expense are usually
1. Debit |
2. Credit |
7.
Whatshould be credited, if rent paid in cash?
1. Landlords account |
2. Rent account |
3. Cash account |
4. Accounts receivable account |
8.
Financialaccounting provides financial information to all of the following externalusers except:
1. Government agencies |
2. Investors |
3. Creditors |
4. Managers |
9.
Franchiserights, goodwill and patents are the examples of:
1. Liquid assets |
2. Tangible assets |
3. Intangible assets |
4. Current assets |
10.
Findout the missing value of an Accounting Equation with the help of given data:Owners equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash Rs. 1,000 Bank Rs.2,000 Debtors Rs. 500.
1. Rs. 102,885 other assets |
2. Rs. 102,885 current liabilities |
3. Rs. 99,885 current liabilities |
4. Rs. 99,385 other assets |
30 Total Question(s) |
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Bottom of Form
11.
Ifcost of sales is Rs. 95,000, income from sales Rs. 200,000 and operatingexpenses Rs. 300,000. What will be net result?
1. Rs. 1, 95,000 Losses |
2. Rs. 1, 95,000 Profits |
3. Rs 1, 05,000 Profits |
4. Rs1, 05,000 Losses |
12.
Allof the following are forms of organizations except:
1. Proprietorship |
2. Corporation |
3. Retailer |
4. Partnership |
5. None of these |
13.
TotalSales are calculated by adding:
1. Cash sales and cash received from debtors |
2. Credit sales and cash received from debtors |
3. Cash sales and credit sales |
4. Cash ales and credit purchases |
14.
Considerthe following data: Particulars Rs. Assets 105,000 Owner's equity 70,000Liabilities?
1. Rs. 35,000 |
2. Rs. 1, 75,000 |
3. Rs. 7, 35,000 |
4. Rs. 1, 05,000 |
15.
Whichone of the following accounts would usually have a debit balance?
1. Cash |
2. Creditors |
3. Accounts payable |
4. Salaries Expenses |
5. None of these |
16.
Wagespaid to labourers working in the manufacturing department is treated as anexpense of:
1. Cost of goods sold |
2. Administrative expenses |
3. Selling expenses |
4. Marketing expenses |
17.
Themaximum number of partners in Pakistan can be fixed at the following:
1. 20 |
2. 50 |
3. 75 |
4. None of these |
18.
Whichof the following accounts can be classified as a real account?
1. Rent expenses account |
2. Rent income account |
3. Insurance expenses account |
4. Cash account |
19.
Anowner investment of each into the business would:
1. Increase assets |
2. Decrease liabilities |
3. Increase withdrawals |
4. Decrease owners equity |
5. None of these |
20.
Whatwill be debited, if Mohsin commenced business with cash?
1. Cash account |
2. Capital account |
3. Drawings account |
4. Proprietor account |
21.
Findout the missing value of an Accounting Equation with the help of given data:Bank Rs. 22,500 Other assets Rs. 1,000 Creditors Rs. 8, 385 Other liabilitiesRs. 9,000 Owners equity?
1. Rs. 6,115 |
2. Rs. 31,885 |
3. Rs. 17,385 |
4. Rs. 14,115 |
22.
Inwhich of the following statement opening stock is shown?
1. Profit and loss account |
2. Balance sheet |
3. Cash flow statement |
4. Owners equity |
23.
Cashand other resources that are expected to turn to cash or to be used up withinone year of the balance sheet date are called:
1. Current liability |
2. Current assets |
3. Fixed assets |
4. Long-term assets |
24.
Forwhich step of accounting process the accountants of business entity preparefinancial statements?
1. Identification of economic event |
2. Communication of financial information |
3. Recording financial information |
4. Making decisions about business |
25.
Auditingis what?
1. Reporting the financial information |
2. Examination of financial statements |
3. Preparation financial statements |
4. Maintaining the ledger records |
Title:Fill in the Blanks
26.
Obligations (amounts owed) are reportedon the balance sheet and are referred to as .
27.
Liabilities often have the word intheir account title.
Title:Multiple AnswerQuestions
Description:
Indicate the two (ormore) effects on the accounting equation of the business or company.
28.
Theowner invests personal cash in the business.
1. Assets: Increase |
2. Assets: Decrease |
3. Assets: No Effect |
4. Liabilities: Increase |
5. Liabilities: Decrease |
6. Liabilities: No Effect |
7. Owner's (or Stockholders') Equity: Increase |
8. Owner's (or Stockholders') Equity: Decrease |
9. Owner's (or Stockholders') Equity: No Effect |
29.
Thecompany receives cash from a bank loan.
1. Assets: Increase |
2. Assets: Decrease |
3. Assets: No Effect |
4. Liabilities: Increase |
5. Liabilities: Decrease |
6. Liabilities: No Effect |
7. Owner's (or Stockholders') Equity: Increase |
8. Owner's (or Stockholders') Equity: Decrease |
9. Owner's (or Stockholders') Equity: No Effect |
30.
CompanyX provides consulting services to Client Q in May. Company X bills Client Q inMay for the agreed upon amount of $5,000. The sales invoice shows that theamount will be due in June. 1 What is the effect on Client Q's accounting equation in June when Client Qremits the $5,000? Also, which accounts will be involved?
1. Assets: Increase |
2. Assets: Decrease |
3. Assets: No Effect |
4. Liabilities: Increase |
5. Liabilities: Decrease |
6. Liabilities: No Effect |
7. Owner's (or Stockholders') Equity: Increase |
8. Owner's (or Stockholders') Equity: Decrease |
9. Owner's (or Stockholders') Equity: No Effect |
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