Accounting Equation

Q. Which of these is not included as a separate item in the accounting equation?

1. Assets
2. Liabilities
3. Revenues
4. Capital

Q.

What is the order of permanence in accounting?

Q.

What are the basic elements of accounting?

Q.

If liabilities increase by 3, 000 and equity increases by 2, 000, what is the effect on assets?

1. Decreases by 1000

2. Increases by 5000

3. Decreases by 5000

4. Increases by 1000

Q. Capital of business is Rs. 75, 000 and liability is Rs. 25, 000 then total assets of business would be ___________.

1. Rs. 15, 000
2. Rs. 1, 00, 000
3. Rs. 75, 000
4. Rs. 50, 000

Q. Assets = +

1. Revenues
2. Capital
3. Liabilities
4. Expenses

Q. The liabilities of a firm are Rs. 3, 000; the capital of the proprietor is Rs. 7, 000. The total assets are __________.

1. Rs. 10, 000
2. Rs. 7, 000
3. Rs. 4, 000
4. Rs. 5, 000

Q. gets added to capital.

1. Profit
2. Loss
3. Expenses
4. Loan

Q. Debtor's A/c shows debit balance.

1. True
2. False

Q. Kamal started business and invests Rs. 50000 on 1st April 2010. On31st March 2011, his assets are Rs.65000 and liabilities Rs.6000. Kamal withdrew from his business Rs. 3000 for personal use. Find out the profit
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Q.

Which of the following is correct?

1. None of these

2. Capital = Asset + Liability

3. Liability = Asset + Capital

4. Asset = Liability + Capital