Free Printable Monthly Test - FA (Equation, Journal, ledger)

1.

Which of the following statements is incorrect?

a)

Liabilities + Assets = Capital

b)

Assets – Liabilities = Capital

c)

Liabilities + Capital = Assets

d)

Assets - Capital = Liabilities

2.

1. On January 1st, 2009 an entity's balance sheet showed total assets of Rs. 750 and liabilities of Rs. 250. Owners' equity at January 1st was?

a)

RS.750

b)

RS.1000

c)

RS.500

d)

RS.250

3.

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

a)

Rs. 1,00,000

b)

Rs. 80,000

c)

Rs. 1,20,000

d)

Rs. 20,000

4.

1. Find out the missing value liabilities in an accounting equation with the help of given data?

Furniture Rs.90,000

Cash Rs.1,00,000

Debtors Rs.10,000

Other Assets Rs.1,000

Owner’s equity Rs.90,000

a)

Rs. 2,01,000 liabilities

b)

(b) Rs. 1,11, 000 liabilities

c)

Rs. 2,90, 000 liabilities

d)

Rs. 2,91, 000 liabilities

5.

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

a)

Only one

b)

Only two

c)

Two or more

d)

All of given options

6.

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

a)

Assets = Claims

b)

Assets = Liabilities + Owner Equity

c)

Assets – Liabilities = Owner’s Equity

d)

Assets + Owner’s Equity = Liabilities

7.

1. Consider the following data?

Particulars Rs.

Assets 8,20,000

Owner’s Equity 3,80,000

Liabilities ?

a)

Rs. 49,000

b)

Rs. 55,000

c)

Rs. 4,40,000

d)

Rs. 1,98,000

8.

Find out value of account receivable from following Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs. 77,000?

a)

Rs. 21,000

b)

Rs. 41,000

c)

Rs. 15,000

d)

Rs. 1,10,000

9.

Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and capital (C)?

a)

A = L + R + E + C

b)

A = C + L + (R-E)

c)

A = C - (R - E) + L

d)

A = (L - C) + (R - E)

10.

Which of the following account is affected from the drawings of cash in sole-proprietorship business?

a)

Shareholder account

b)

Capital account

c)

Liability account

d)

Expense account

11.

Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts?

a)

Cash & Bank Loan

b)

Bank & Debtors

c)

Drawing & Cash

d)

Cash & Bank

12.

Mr. A provided the following information from his books of accounts at the end of the month. What is the amount of his capital?

Particulars Rs.

Cash 2,000 Account Receivable 500

Account Payable 200

Bank Loans 1,000

a)

Rs. 200

b)

Rs. 900

c)

Rs. 1200

d)

Rs. 1300

13.

The favourable balance of profit and loss account should be?

a)

Added in liabilities

b)

Subtracted from current assets

c)

Subtracted from liabilities

d)

Added in capital

14.

Revenue of the business includes?

a)

Cash sales only

b)

Credit sales only

c)

Credit purchases only

d)

Both cash sales and credit sales

15.

The amount brought in by owner of the business should be credited to?

a)

Owner Equity

b)

Drawing

c)

Cash

d)

All of above

16.

Which of the following transactions occurs on daily basis in a large business organization?

a)

Purchaser of equipment

b)

Payroll

c)

Credit sales

d)

Payment of suppliers

17.

Transactions are initially recorded in the?

a)

Book of Final Entry

b)

Accounting Equation

c)

T Accounts

d)

Book of Original Entry

18.

Of the following account types, which would be increased by a debit?

a)

Liabilities and expenses

b)

Assets and equity

c)

Assets and expenses

d)

Equity and revenues

19.

Sales made to Ahmed on credit should be debited to?

a)

Account Receivable

b)

Cash

c)

Account Receivable-Ahmed

d)

Sales

20.

According to the rules of debit and credit for balance sheet accounts?

a)

Increase in assets, liabilities and owner equity recorded by debit

b)

Decrease in asset and liability are recorded by credit

c)

Increase in asset and owner’s equity are recorded by debit

d)

Decrease in liability and owner’s equity are recorded by debit

21.

In which order does the Journal list transactions?

a)

Chronological

b)

Decreasing

c)

Increasing

d)

Alphabetical

22.

All of the following are true regarding journal entries except?

a)

Journal entries show the effects of transactions

b)

Journal entries provide account balances

c)

The debited account titles are listed first

d)

Each journal entry should begin with a date

23.

Which of the following accounts would be increased with a debit?

a)

Contributed Capital

b)

Retained Earnings

c)

Expenses

d)

Revenues

24.

Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

a)

Vehicle account

b)

Cash account

c)

Business account

d)

Bank account

25.

The abbreviations for debit and credit (Dr. and Cr.) come from what language words?

a)

Latin, debere and credere

b)

Latin, debtor and creditor

c)

Greek, debere and credere

d)

Greek, debtor and creditor

26.

Which one of the following is used to record financial transactions in date wise order?

a)

Account

b)

Voucher

c)

General Journal

d)

General Ledger

27.

Accrued expenses are also called?

a)

Accrued liabilities

b)

Expenses incurred but not paid

c)

Both A & B

d)

None

28.

Which of the following account/s will be affected under the rule of accrual accounting, when furniture is purchased on cash?

a)

Only Cash Account

b)

Only Bank Account

c)

Only Furniture Account

d)

Only Purchases Account

29.

Purchased goods from Ahmed for cash should be credited to?

a)

Account Payable _ Ahmed

b)

Cash A/c

c)

Purchases A/c

d)

Account Receivable _ Ahmed

30.

Credit terms of 1/10, n/30 mean that?

a)

Payment in full is due 10 days after date of the invoice

b)

If the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 20 days

c)

Payment in full is due 30 days after date of the invoice

d)

If the invoice is paid within 10 days of its date, a 1% discount may be taken; otherwise the total amount is due in 30 days

31.

Commission received is an example of?

a)

Real A/c

b)

Personal A/c

c)

Nominal A/c

d)

None

32.

Which of the following transactions would have no impact on stockholders' equity?

a)

Purchase of the land from the proceeds of bank loan

b)

Dividends to stock holders

c)

Net loss

d)

Investment of cash by Stockholders

33.

A ledger is called a book of.

a)

Primary entry

b)

Final entry

c)

Original entry

d)

None of the above

34.

From which of the following is a ledger account prepared.

a)

Transactions

b)

Journal

c)

Events

d)

None of the above

35.

The process of transferring of items from a journal to their respective ledger accounts is called as.

a)

Entry

b)

Arithmetic

c)

Balancing

d)

Posting

36.

The ledger column that links the entry with the journal is called as.

a)

J.F. column

b)

L.F. column

c)

Credit column

d)

Debit column

37.

The left hand side of the ledger account is referred to as.

a)

Footing

b)

Credit side

c)

Debit side

d)

Balance

38.

An account is having debit balance is established when.

a)

The last entry of the accounting period was posted on the debit side

b)

The amount of debit exceeds the amount of the credits

c)

There are more entries on the debit side than on the credit side

d)

None of above

39.

Which of the following account/s will be affected, when Goods Purchased Rs.10,000 and at the time of purchase only 50% amount received in cash ?

a)

Only Cash and Goods Account

b)

Only Goods and Creditors Account

c)

Cash & Purchase Account

d)

Purchases, Cash & Creditors Account

40.

Which of the following account will be debited and credited in the books of XZ Co. Ltd, when Furniture sold Rs.10,000 and immediately amount invested in business ?

a)

Cash & Furniture and Capital account

b)

Cash & Capital account

c)

Cash & Business account

d)

Cash & Bank account

Monthly Test - FA (Equation, Journal, ledger)

Total questions: 40

Worksheet time: 37mins

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