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ACCOUNTING EQUATIONS

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

Assets= Capital+--------------.

(a)  

2.

Accounting equations is prepared as per ---------------concept.

(a)  

3.

Account is having --------------shape.

(a)  

4.

Outstanding Rent is ........

a)

Liability

b)

Asset

c)

Expense

d)

Income

5.

Accrued Commission is...

a)

Income

b)

Asset

c)

Liability

d)

Expense

6.

Salary received in advance is ......

a)

Asset

b)

Expense

c)

Income

d)

Liability

7.

Prepaid wages is ......

a)

Liability

b)

Asset

c)

Income

d)

Expense

8.

What account is used when we pay rent in advance for an office building?

a)

Rent Expense

b)

Prepaid Rent

c)

Rent Payable

d)

Rent Revenue

9.

The accounting equation is Assets + Liabilities = Capital. True of False?

a)

True

b)

False

10.

The accounting equation is Assets - Liabilities = Owner's Equity (Capital). True of False?

a)

True

b)

False

11.

The accounting equation is Assets = Liabilities + Owner's Equity (Capital). True of False?

a)

True

b)

False

12.

Every Transaction must balance.

a)

True

b)

False

c)

May be

13.

Financial records should be maintained in a "permanent" form; that is, written in ink or recorded on a computer.

a)

True

b)

False

14.

If $ 70 is recorded as debit entry to an account,, a credit entry of $ 70 must be recorded to another account, which ensures every transaction is balanced, this is called:

a)

Simple entry

b)

General Journal

c)

Double entry-system

d)

No Entry

15.

Double entries implies that

a)

Recording entries in journal

b)

Recording entries in ledger account

c)

Recording two aspects of every transactions

d)

Recording every transaction in books