ACCOUNTING EQUATION AND CLASSIFICATIONS

1.           Which of the following equations correctly represents a basic accounting equation?

• Assets = Owner's equity

• Assets = Liabilities

• Assets = Cash

•   Assets – Liabilities = Owner’s equity

Assets – Capital – Liabilities + Expenses is equal to

• Expenses

• Assets

• Revenues

•   Liabilities

  Which of the following items CANNOT be considered as a revenue?

 

• Commission income

• Accounts receivable

• Rent received

• Interest revenue

The debts to be paid within a short period (a year or less) are known as          

• Non-Current liabilities

• Non-current assets

• Current liabilities

• Current assets

Which of the following is an example of tangible non-current asset?   

 

• Furniture

• Cash

• Patents

• Accounts payable

Which of the following is an example of a liability?

 

•   Loan from Bank Kaya Bhd

• Loan to Ramlee

• Office equipment

• Fixed deposit

The economic resources in the company that are expected to provide benefits in the future are referred to as:

 

  

• Liabilities

• Revenues

• Assets

•      Owner’s equity

A business has a furniture valued at RM30,000, inventory RM9,500, cash RM1,000, account payables RM4,000 and loan RM5,000. What is the amount of capital?

 

                  

     

                 

• A.  RM31,500

•     B.  RM39,500

•     C. RM41,500

•   D. RM49,500

Which of the following group is correct?

 

                  

                      

                 

                    

•       Intangible assets - Patents, Goodwill, Bank

•  Revenues – Dividend received, Interest on fixed deposit, Rent received

•    Expenses – Maintenance, Utilities, Drawing

•     Non-current liabilities – Loan, Mortgage, Bank overdraft

The owner’s equity will increase when

 

i.   A business incurred net loss

ii.  The owner brought his own van for use in the business

iii.  The business paid a supplier with his own cash

iv. The business obtained a net profit

 

 

• A.  i and ii

• B.  ii and iv

• C. iii and iv

• D. ii, iii and iv