FAR 1

Which of the following is correct?

• Assets=Liabilities-Capital

• Assets=Capital- Liabilities

• Assets=Liabilities+Capital

• Assets=External equities

debit means

• an increase in asset

• a decrease in asset

• an increase in liability

• an increase in proprietor's equity

On purchase of a machine Rs. 100 paid to workers as wages for installing the machine:

• Wages A/c be debited

• Installation charges A/c be debited

• Machinery A/c be debited

Purchase of an asset is

• an expense

• a loss

• an asset

• none of these

Patent right is

• personal account

• real account

• nominal account

• expense account

Which of the following accounts have only credit balance?

• accounts payable account

• salaries outstanding account

• discount received

• All of the above accounts

Which of the following accounts will invariably have a debit balance?

• Accounts receivable account

• Accounts payable account

• Loan account

• Gain on sale of the asset

Which of the following accounts may have a debit or credit balance?

• Discount received account

• sales account

• trade expenses account

• loan account

Debit the receiver and credit the giver is the rule for ..... account

• Personal

• Nominal

• Real

• All of these

The golden rule for Nominal account is....

• Debit the receiver and credit the giver

• debit all expenses and credit all incomes

• debit what comes in and credit what goes out

• none of these