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Business
11th -
University
Accounting Principles & Accounting Equation
11 questions
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- 1. Multiple Choice
Which of the following concepts, it is assumed that business will exist for an indefinite time period: (2015)
Realization concept
Going concern concept
Business entity concept
None of these
- 2. Multiple Choice
Received cash from Bilawal will affect: (2016)
Cash and creditors
Cash and stock
Cash and owner's equity
Cash and debtors
- 3. Multiple Choice
An asset is ordinarily entered on the accounting record at the price paid to acquire it. This accounting concept is called: (2017)
Matching concept
Realization concept
Cost concept
Going concern concept
- 4. Multiple Choice
Sold goods costing Rs. 1500 for Rs. 1750 will increase the owner's equity by Rs:__________(2018)
250
1500
1750
3250
- 5. Multiple Choice
Which of the following convention states "accounting practice should remain unchanged from one period to another"? (2018)
Conservatism
Materiality
Full disclosure
Consistency
- 6. Multiple Choice
Modern accounting is based on: (2019)
Cost concept
Matching concept
Going concern concept
Dual aspect concept
- 7. Multiple Choice
Which of the following statements is incorrect?
Liabilities + Assets = Capital
Assets – Liabilities = Capital
Liabilities + Capital = Assets
Assets - Capital = Liabilities
- 8. Multiple Choice
The accounting equation should remain in balance because every transaction affects how many accounts?
Only one
Only two
Two or more
All of given options
- 9. Multiple Choice
If the assets of a business are Rs. 100,000 and equity is Rs. 20,000, the value of liability will be?
Rs. 100,000
Rs. 80,000
Rs. 120,000
Rs. 20,000
- 10. Multiple Choice
Which of the following is not a correct form of the Accounting Equation?
Assets = Claims
Assets = Liabilities + Owner Equity
Assets – Liabilities = Owner’s Equity
Assets + Owner’s Equity = Liabilities
- 11. Multiple Choice
A business transaction affects: (2015)
At least one account
At least two accounts
Maximum two accounts
Maximum three accounts
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