Relationship between CLEAR and AE

Q.

Nominal Accounts are Related to

Q. Trade payables/ creditors belong to which class of accounts?

1. Capital
2. Assets
3. Liabilites
4. Expenses

Q. Match the following items to their categories of accounts.

1. Asset
2. Liability
3. Expense
4. Revenue

Q.

Changes in expenses and revenue will effect which part of accounting equation?

1. Assets

2. Liabilities

3. Capital

4. None of these

Q.

How will the profit of the business adjust in accounting equation?

1. Increasing assets

2. Decreasing assets

3. Increasing capital

4. Decreasing capital

Q. gets affected by changes in expenses and revenue.

1. Capital
2. Assets
3. Liabilities

Q. Accounts payable/creditors can be classified as __________.

1. Asset
2. Liability
3. Revenue
4. Expense

Q. Pre-paid rent A/c appearing in Trial balance is treated as_________.

1. Liability
2. Income
3. Expenses
4. Asset

Q. Accounts payable is an item of _________.

1. asset
2. revenue
3. liability
4. expense

Q. Revenue gets to capital and expenses get from capital.

1. added
2. deducted
3. multiplied
4. divided

Q. Capital = Assets - Liabilities

1. False
2. True