Which of the following assumption or principle requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities:

*

Monetary unit assumption

Economic entity assumption

Historical cost principle

This is possible that a particular business transaction will affect only the left side of accounting equation.

*

False

True

Which statement is correct: *

A transaction must be recorded twice

A transaction is recorded once, with duel effect

None of them

Which of the following will cause owner's equity to decrease? *

Net Income

Net Loss

Revenue

As soon as a business receives a service from another party but no payment was made, it should record the transaction by: *

Increasing Revenue(Service) and Asset (Accounts Receivable)

Increasing Expense and Increasing Liability

None of the above

Owner's drawings and expense will decrease the Owner's equity for: *

Corporation

Proprietorship business

A only

Huzaifa has invested $40,000 cash, computer worth $5,000 and motor vehicle worth of $ 10,000 into the business. What would be the affect on accouting equation *

Assets increase by $55,000 and Owner's equity increase by $55,000

Cash Increase by $40,000, Computer increase by $5,000, Motor vehicle increase by $10,000 and Owner's Capital inceaser by $55,000

Cash Increase by $40,000, Computer increase by $5,000, Motor vehicle increase by $10,000 and Owner's Capital decrease by $55,000

Cash Increase by $40,000, Computer increase by $5,000, Equipment increase by $10,000 and Owner's Capital Increase by $55,000

January 1, 2019, Mohamad's company had $80,000 liabilities; $49,000 of owner's equity, so assets amount would be: *

31,000

129,000

None of them

January 1, 2019, Huzaifa' s company had Owner's Equity $90,000; and December 31, the company had additional investment $15,000; owner's equity $151,000; drawings $10,000; and total revenue 500,000 , so total expenses would be: *

440,000

340,000

300,000

Abdur Rahman has Purchased a New computer for his business $8,000, he paid $3,000 cash and the balance will be paid 2 months. Affect of the transac would be? *

Equipment $8,000 increase, cash decrease $3,000 and Equipment payable increase $8,000

Computer $8,000 increase, cash decrease $3,000 and Accounts payable payable increase $8,000

Assets $8,000 increase, cash decrease $3,000 and Equipment payable increase $8,000

None of them