free session accounting quiz

which of the following accounting equation is false?

• ASSET = EQUITY + LIABILITY

• ASSET - LIABILITY = EQUITY

• EQUITY - LIABILITY = ASSET

• ASSET - EQUITY = LIABILITY

"Assets and liabilities are owned and controlled by a business" is this statement true or false?

• TRUE

• FALSE

what is the main purpose of accounting?

• To known if the business has earned a profit .

• To provide information to stakeholders for decision making

• for legal requirements

• for proper management

which account when increase is DR and when decrease is CR ?

• creditor account

• Bank loan account

• capital account

• motor vehicle account

value of total assets is rs 50000 and liabilities is rs 20000. what is his value of equity in the business?

• rs 30000

• rs 50000

• rs 70000

• rs 20000

Are trade payables a non current liability?

• YES

• NO

"sold goods worth rs 5000 for rs 8000 in cash " by how much did the EQUITY of the business get affected ?

• increased by rs 5000

• decreased by rs 3000

• increased by rs 3000

• Equity didnt get affected

Which of the following are only current assets?

• closing stock , creditor , motor vehicle

• Debtor , cash , closing stock

• bank , cash , trade payables

• bank loan , receivables , cash

which of the following increases the EQUITY in a business?

• income & capital

• investment & debtors

• profit & expense

• income and expense

a non current asset of a furniture manufacturing business?

• receivable rent income

• carpenter table

• cash in hand