On January 1, 2009, Madison Company had Rs60,000 of Retained Earnings. During 2009 Madison earned net income of Rs100,000 and declared and paid dividends of Rs15,000. In addition, the company received cash of Rs25,000 as an additional investment by its owners. Therefore, the ending balance in Retained Earnings at December 31, 2009 would be

Select one:

a. Rs145,000

b. Rs 90,000

c. Rs130,000

d. Rs170,000

Which of the following items would not fall under the definition of an asset?

Select one:

a. Machinery

b. Owners equity

c. Cash

d. Land

Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?

Select one:

a. Materiality concept of accounting

b. Matching principle of accounting

c. Time period concept of accounting

d. Business or economic entity concept of accounting- Separate entity

The journal entry to record the receipt of rent received in advance requires a:

Select one:

a. Credit to Cash.

b. Debit to Cash

c. Credit to Rent Revenue.

d. Debit to Unearned Rent.

Which of the following accounts is NOT closed at the end of the accounting year?

Select one:

a. Interest receivable

b. Sales revenue

c. Depreciation expense

d. Cost of goods sold

Infosys Company issued 200,000 shares of its common stock for cash. The journal entry to record the stock issue would include

Select one:

a. A debit to Common Stock

b. A debit to Retained Earnings

c. A credit to Cash

d. A credit to Common Stock

Infosys Company issued 200,000 shares of its common stock for cash. The journal entry to record the stock issue would include

Select one:

a. A debit to Common Stock

b. A debit to Retained Earnings

c. A credit to Cash

d. A credit to Common Stock

A business has the following items in it: - Owners equity $600,000 - Total liabilities $1,400,000

What is the value of the assets in this business?

Select one:

a. $600,000

b. $800,000

c. $1,400,000

d. $2,000,000

Revenue accounts are increased by credits

Select one:

a. Never

b. Only when they have a credit balance

c. Only when they have a debit balance

d. Always

The Profit and Loss account is also called

Select one:

a. Balance Sheet

b. Income Statement

c. Trial Balance

d. Cash Flow Statement

The elements of the accounting equation are

I. Assets

II. Liabilities

III. Trial Balance

IV. Capital

Select one:

a. I, II and IV

b. I, II and III

c. I, III and IV

d. II, III and IV