Module 2 ANA

Multiple Choice

What does the accounting equation A = L + Eq represent in terms of financial statements?

• Total Assets

• Total Liabilities

• Total Shareholders' Equity

• All of the above

Multiple Choice

What is the effect of the transaction 'Owner's withdrawal' on the accounting equation?

• Increase Assets

• Decrease Assets

• Increase Liabilities

• Decrease Liabilities

Multiple Choice

What is the effect of a debit on assets according to the double entry rules?

• Increase assets

• Decrease liabilities

• Increase equities

• Decrease assets

Multiple Choice

What is the effect of a debit entry on an expense account?

• Increases the account

• Decreases the account

• Has no effect

• Transfers the balance

Multiple Choice

Who are the internal users of financial statements?

• Owners

• Managers

• Employees

• All of the above

Multiple Choice

What is a characteristic of useful financial information?

• It should be complex and detailed.

• It should be understandable, relevant, reliable, and comparable.

• It should be applicable only to financial experts.

• It should be outdated but accurate.

Multiple Choice

What is the total comprehensive income/loss for the financial year 2025 as per the Statements of Comprehensive Income?

• 401,244

• 734,139

• 190,138

• 29,581

Multiple Choice

What is the total amount of noncurrent assets listed in the financial statement?

• 1,520,000

• 1,825,000

• 750,000

• 305,000

Multiple Choice

What is the total amount of Share Capital as of December 31, 2023?

• $55,000

• $65,000

• $10,000

• $83,423