Submit Solution

Your email address will not be published. Required fields are marked *

More Questions on This Topic :

Question 1. ______ is the withdrawal of cash and goods by the owner of the business for his/her personal use
  1.    Depreciation
  2.    Drawings
  3.    Outflow of cash
  4.    Appreciation
Answer: Option B

Question 2. Net loss occurs when
  1.    Expenses are greater than income
  2.    Expenses are less than income
  3.    Expenses = Income
  4.    Liabilities are greater than income
Answer: Option A

Question 3. Double entry implies that
  1.    Recording entries in Journal
  2.    Recording entries in Ledger account
  3.    Recording two aspects of every transaction
  4.    Recording every transaction in books
Answer: Option C

Question 4. What is equity?
  1.    Cash from the business
  2.    Liability of a business
  3.    Owner's claim on total assets
  4.    Owner's claim on total liabilities
Answer: Option C

Question 5. Which of the following is a liability?
  1.    Cash
  2.    Equipment
  3.    Debtors
  4.    Creditors
Answer: Option D

Question 6. What is the basic accounting equation?
  1.    Capital + Liabilities = assets
  2.    Assets + Liabilities = Capital
  3.    Capital + Assets = Liabilities
  4.    Liabilities - Capital = Assets
Answer: Option A