FA 2023 first quiz

Which of the following is the correct extended version of basic accounting equation.

• Assets = Liabilities + Capital + Revenue - Expenses – Dividend

• Assets = Liabilities + Equity + Revenue - Expenses - Dividend

• Assets = Liabilities + Capital - Revenue - Expenses - Dividend

• Assets = Liabilities + Equity - Revenue - Expenses - Dividend

Payment received from Account Receivables:

• Decreases the total assets 

• Increase the total liabilities

• Increases the total assets

• Results in no change in total assets

The part of profit a shareholder will receive is called.

• Dividend 

• Surplus

• Net Income  

• Retained earnings

The Profit and Loss Statement shows:

• The financial performance and the financial position of the business

• The cash flow of the business

• The financial position of the business

• The financial performance of the business

Which of the following is an asset?

• Accounts Payable

• Advance given to supplier

• Advance received from customer

• Loan received from bank

Which of the following is a current asset?

• Building

• Machinery

• Equipment

• Inventory

Which of the following is a non-current asset (fixed assets)?

• Material

• Trade receivables

• Patent

• Cash and Cash equivalents

The part of profit left over after paying direct expenses, indirect expenses, taxes, and dividend called as:

• Retained Earning

• Net Income

• Profit before tax

• Gross profit

Which of the following will decrease liability?

• Credit sales 

• Loan received from bank

• Credit purchase

• Payment to accounts payables

Which of the following accounting concept is responsible for difference in reported profit/loss amount and cash balance amount at the end of the year?

• Accrual concept

• Matching concept

• Accounting period concept

• Business entity concept