Accounting Equation
What is the formula for Accounting Equation?
Assets= Liabilities + Capital
________________ is a process of detailed recording of all the financial transactions of a business.
Book-keeping
Patent is an example of :
(a) Asset
(b) Liability
(c) Capital
(a) Asset
For a Real account, Debit __________
what comes in
'State Bank of India’ is an example of which type of account?
Personal A/c
If Liabilities is equal to $220,000 and Capital is equal to $42,000. How much is Assets?
$262,000
Define Accounting.
Accounting uses the book-keeping records to prepare financial statements at regular intervals.
What is the purpose of Accounting?
To produce financial statements to see clearly whether the business is making a profit or loss in order to make informed decisions
For a _________ Account, credit all incomes and gains.
Nominal
Identify the odd one out:
(a) Building
(b) Land
(c) Machine
(d) Shaina's A/c
Shaina's A/c, as it is a personal account, whereas others are examples of real account.
If Liabilities is equal to $24,000 and Assets is equal to $57,000. How much is Capital?
$33,000
From Accounting point of view, the owner of the business and the business are treated as the same.
State whether True or False.
False.
The owner of the business and the business are treated as completely separate from each other.
_________________ represent the amount owed to the business by its customers.
Trade receivables.
Accounts which represent a particular person or group of persons known as:
Personal A/c
Journal entry for Goods sold to Yen on account.
Yen's A/c --- Dr
Sales A/c --- Cr
If Assets is equal to $325,000 and Liabilities is equal to $273,000. How much is Capital?
$52,000
____________ is the goods a business as available for resale.
Inventory
A ___________________________ shows the assets & liabilities of a business on a certain date.
Statement of Financial Position.
State the rule for Personal account.
Debit the receiver, credit the giver.
Journal entry for goods purchased and paid by cheque
Purchase A/c --- Dr
Bank A/c --- Cr
If Assets is equal to $650,000 and Capital is equal to $490,000. How much is Liabilities?
$160,000
Trade payables represent the amount the business owes to the credit supplies of goods.
The day to day business transactions are recorded using the _________________________
Double entry book-keeping system.
Rules of Assets accounts:
(a) Increase in assets are debited; decrease in assets are credited.
(b) Decrease in assets are debited; an increase in assets are credited.
(a) Increase in assets are debited; decrease in assets are credited.
Cash Withdrawn by owner for his personal use, the result will be:
(a) Assets increases and Capital decreases
(b) Assets decreases and Capital decreases
(c) Assets decreases and Capital increases
(d) Assets increases and Capital increases
Asset decreases & Capital decreases