Accounting Principles & Accounting Equation

Which of the following concepts, it is assumed that business will exist for an indefinite time period: (2015)

• Realization concept

• Going concern concept

• Business entity concept

• None of these

Received cash from Bilawal will affect: (2016)

• Cash and creditors

• Cash and stock

• Cash and owner's equity

• Cash and debtors

An asset is ordinarily entered on the accounting record at the price paid to acquire it. This accounting concept is called: (2017)

• Matching concept

• Realization concept

• Cost concept

• Going concern concept

Sold goods costing Rs. 1500 for Rs. 1750 will increase the owner's equity by Rs:__________(2018)

• 250

• 1500

• 1750

• 3250

Which of the following convention states "accounting practice should remain unchanged from one period to another"? (2018)

• Conservatism

• Materiality

• Full disclosure

• Consistency

Modern accounting is based on: (2019)

• Cost concept

• Matching concept

• Going concern concept

• Dual aspect concept

Which of the following statements is incorrect?

• Liabilities + Assets = Capital

• Assets – Liabilities = Capital

• Liabilities + Capital = Assets

• Assets - Capital = Liabilities

The accounting equation should remain in balance because every transaction affects how many accounts?

• Only one

• Only two

• Two or more

• All of given options

If the assets of a business are Rs. 100,000 and equity is Rs. 20,000, the value of liability will be?

• Rs. 100,000

• Rs. 80,000

• Rs. 120,000

• Rs. 20,000

Which of the following is not a correct form of the Accounting Equation?

• Assets = Claims

• Assets = Liabilities + Owner Equity

• Assets – Liabilities = Owner’s Equity

• Assets + Owner’s Equity = Liabilities