Accounting 803 General Revision 1

A company's resources with future benefits or things a company owns or controls is called :

• Assets

• Liabilities

• Drawings

• Expenses

Capital is classified as :

• Assets

• Liabilities

• Owners Equity

• Revenue

Account receivable is classified as :

• Current assets

• Fixed assets

• current liabilities

• Long term liabilities

Mortgage Payable is classified as :

• Current assets

• Fixed assets

• current liabilities

• Long term liabilities

Prepaid expense is classified as :

• Assets

• Liabilities

• Revenues

• Expenses

Unearned service revenue is classified as :

• Liabilities

• Expenses

• Assets

• Revenues

If Jassem withdraw BD 300 for personal or private use then :

• Drawings will be on the debit side and cash will be on the credit side

• Cash will be on the debit side and drawing on the credit side.

• Drawing will be on the debit side and account receivable on the credit side.

• Account payable will be on the debit side and drawing will be on the credit side.

On Feb 28 ,2020, Jassem Company decided to purchase a machine of BD500 then :

• Cash will increase by BD 500

• Cash will decrease by BD 500

• Cash may increase or decrease

• The transaction will not have any effect on the accounting equation

On Feb 28,2019 ,the assets and liabilities of Marwan company were as follows .Then , the amount of owners equity is :

• BD 30000

• BD 40000

• BD 55000

• BD 70000

An insurance premium of BD 12000 has been paid on June30,2019 for one year.

The necessary adjusting entries for the financial year which ends on DEC31,2019 will be :

• Dr. Prepaid insurance BD 7000 / Cr. Insurance expense BD 7000

• Dr. Insurance expense BD 7000 / Cr. Prepaid insurance BD 7000

• Dr. Prepaid insurance BD 6000 / Cr. Insurance expense BD 6000

• Dr. Insurance expense BD 6000 / Cr. Prepaid insurance BD 6000