Accounting equation

if capital is added in the business it will____________ the asset side

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

• A = L + R + E + C

• A = C + L + (R-E)

• A = C - (R - E) + L

• A = (L - C) + (R - E)

Additional capital introduced in the business will increase..................... and .....................

• Liabilites and capital

• Land and Capital

• Assets and Capital

• Assets and Liabilities

which of the following will cause owner"s equity increase ?

• Expense

• Owner Drawee

• Revenue

• Loss

The liability of form h 4000 the capital of proprietor is 8000 the total assets are

• 8000

• 4000

• 12000

• None of these

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

Assets and liabilities increase when the company purchases supplies on account

• True

• False

Amount withdrawn by proprietor for personal use will....... Cash and capital

• Increase

• Decrease

• Not change

• None of these

Difference between Assets and Liabilities is

• Liabilities

• Cash

• Capital

• Drawings

Consider the following data?

• Rs. 4,90,000

• Rs. 5,50,000

• Rs. 4,40,000

• Rs. 3,80,000