1. sales made by Mahesh for cash should be debited to
a) Cash a/c
b) Mahesh a/c
c) Sales a/c
d) Sales return a/c
2. The rent paid to land lord to be credited to
a) Land lord a/c
b) Rent a/c
c) Cash a/c
d) Tenant a/c
3. Which of the following statements are false?
a) All liability is a debt for your business
b) Debtor are a asset for business
c) The accounting equation shows how much of your assets belong to the owner, and how much belong to
people outside business
d) None of the above
4. A business has the following items in it:
Land Rs.1,000,000
Machinery Rs.20,000
Cash Rs.10,000
Debt Rs.0
Owner’s equity?
What is the valve of owner’s equity?
a) Rs.1020000
b) Rs.1010000
c) Rs.1030000
d) None of the above
5. A business has the following items in it:
Owners’ equity Rs.6,00, 000.
Liabilities Rs.14,00,000.
What is the value of Assets ______________
What is the valve of owner’sequity?
a) 600,000
b) 1,400,000
c) 2,000,000
d) None of these
6. A business has the following items in it:
Land Rs.1, 500,000
Machinery Rs.80, 000
Cash Rs.20, 000
Owners equity Rs.900, 000
Loan Rs.500, 000
Creditors?
a) Rs.200, 000
b) Rs.700, 000
c) Rs.800, 000
d) Rs1, 100,000
7. A business has following items in it Land?
Vehicles Rs.600,000
Debtors Rs. 1,20,000
Cash Rs.30,000
Owners’Equity Rs.1,000,000
Loan 5,00,000
Creditors Rs.50,000
What is the value of the land ______________
a) 1,000,000
b) 1,550,000
c) 800,000
d) None of these
8. XYZ ltd.has provided the following information about its balance sheet:
Cash Rs.100
Accounts Receivable Rs.500
Stock holder equity Rs.700
Accounts Payable Rs.200
Bank Loan Rs.1,000
Based on the information provided, how much are XYZ ltd.Total liabilities?
a) Rs.200
b) Rs.1900
c) Rs.1200
d) Rs.1700
9. Contingent liabilities should be recorded in the accounts when:
a) It is probable that the future event will occur.
b) The amount of the liability can be reasonably estimated.
c) Both (a) and (b).
d) Either (a) or (b).
10. Accounting concepts are based on
a) Certain assumptions
b) Certain facts and figures
c) Certain accounting records
d) Practice experience