AE for Buying Assets

Q. When furniture is purchased by paying cash, the value of total assets will .

1. increase
2. not change
3. decrease

Q.

How do you treat outstanding salaries in final accounts?

Q.

The company purchases land by paying half in cash and signing a note payable for the other half. What shall be the effect?

1. Assets - Increase
   Liabilities - No effect
   Capital - Increase

2. Assets - Increase
   Liabilities - Increase
   Capital - No effect

3. Assets - No effect
   Liabilities - Increase
   Capital - Increase

4. Assets - Decrease
   Liabilities - No effect
   Capital - Decrease

Q.

When computer is purchased for cash, what will be the impact on accounting equation?

1. No impact

2. Capital & Assets increases

3. Liabilities & Assets increases

4. Liabilities & Assets decreases

Q.

Furniture bought for office use belongs to which class of account?

1. Capital

2. Liabilities

3. Assets

4. Expenses

Q.

What is the order of liquidity in accounting?

Q.

When a building is bought by paying cash, what will be the impact on accounting equation?

1. Assets & liabilities increases

2. Assets & liabilities decreases

3. No impact

4. None of these

Q.

The company purchases equipment with its cash available in the company`s bank account. What elements of the accounting equation shall get affected by this?

1. Total Assets only

2. TotalAssets & Capital

3. None of the above

4. TotalLiabilities only

Q.

How Do Intangible Assets Affect Financial Statements?

Q. Answer in one sentence only :-

What do you mean by compensating errors?

Q. Write the word/term/pharse which can substitute each of the following statement :

Sum of purchase price of Machinery and installation charges if any, incurred on it

Q. Question

Q.

What are the 2 kinds of bookkeeping?