FR Questions

1.Which of the following is not an accounting equation? 0 1 2 3 4

I do not want to answer this Question capital = Profit + Stock+ Cash Capital = Assets - Liabilities Assets = Capital + Liabilities Liabilities = Assets - Capital

2.A business has assets of Rs.40000 and liabilities of Rs.13,000. What is the am ount of capital ? 0 1 2 3 4

I do not want to answer this Question 27,000 53,000 28,000 None of the above\

3.Altd purchased goods for $ 50000 and incurred Rs 10000 as expenses. Salary per month is Rs. 500. During the first three months sold 75% of the goods at profit of 25% on cost. : 0 1 2 3 4

I do not want to answer this Question 11531 12530 11000 11350

4.Capital = 50,000; Networth = 85,000; Assets = 200,000. Find the missing item o f the accounting equation 0 1 2 3 4

I do not want Liabilities = Liabilities = Liabilities = Liabilities =

to answer this Question 115,000 65,000 150,000 50,000

5.Purchased goods on credit for Rs.70000. What will be the impact on Accounting Equation ( Capital + Liabilities = Assets)? 0 1 2 3 4

I do not Increase Increase Increase Increase

want to answer this Question in Assets and Increase in Liabilities in Capital and Increase in Liabilities in Assets and Increase in Capital in Cash and Increase in Capital

6.Purchased furniture on credit for Rs.10000. Which of the following statements is correct with respect to accounting equation? 0 1 2 3 4

I do not want to answer this Question Increase in one asset and Decrease borrowing/liabilities Decrease in cash and increase in assets Increase in furniture and decrease in capital None of the above

7.Altd. raised Rs. 500,000 as capital and 12% loan of Rs.500000.. Invested all f unds in the purchase and sale of shares of good companies. At the end of the yea r the networth (capital +Profit) of the company was Rs. 600000. Which of the fol lowing statements represents the correct state of affairs: 0 1 2 3 4

I do not want to answer this Question Capital (500000) + Profits (100000) + Loans (500000) = Assets (1100000) Owners fund (600000) +Loans (500000) = Assets (1100000 A & B None of the above

8.Altd has the following transactions: Salary paid: Rs.12000 (per month Rs.4000) , Rent paid: Rs. 24000 (Rent per month; 4000). Sold goods: Rs.50000. Other expen ses per month: Rs2000. Find profit for the first three months: 0 1 2 3 4

I do not want to answer this Question 20000 12000 42000 none of the above

9.A stared business with 50,000; Purchased shares of X ltd.. Sold the shares at the end of the month at Rs. 65000. Show the accounting equation at the end of th e month. 0 1 2 3 4

I do not want to answer this Question Capital (50000) + Profit (15000) = Cash 65000 Capital (65000) = Cash (65000) Capital (50000) - Loss (15000) = Cash (35000) Capital (50000) = Cash (50000)

10.A ltd. purchased scooter for the salesmen and also for his son. However, purc hase of scooter for son will not recorded in the accounting equation due to: 0 1 2 3 4

I do not want to answer this Question Money measurement concept Business entity concept Accrual concept None of the above

11.A ltd. purchases shares of X ltd at a premium of 50% for cash. What will be t he impact on the accounting equatiion of Altd. 0 1 2 3 4

I do not want to answer this Question Cash Decreases and Investment Increases Cash Decreases and Investement Decrease Cash Increases and Investment Increases Capital decreases and Profit Increase

12.At the beginning of the year A started business with 50,000 and Purchased pla

nt = 40,000 ( life 10 years); No production during the year. Rent paid: 3000. Sh ow the accounting equation at the end of the year. 0 1 2 3 4

I do not want to answer this Question Capital (50000) - Loss (7000) = Cash (7000) + Plant (36000) Capital (50000) + Profit (7000) = Cash (7000) + Plant (36000) Capital (50000) - Loss (7000) = Cash (36000) + Plant (7000) Capital (50000) = Cash (7000) + Plant (43000)

13.Altd takes a loan (rate of interest is 12% per annum) and purchases goods for $ 5000 on 1st April 2005. and incurred Rs 1000 as other expenses. During the ye ar sold all goods for 10000. Profit earned is: 0 1 2 3 4

I do not want to answer this Question 3425 3850 3400 3000

14.A ltd purhchased plant at the cost of Rs. 25000. The market value of the plan t is Rs. 300000 and the Altd expects to earn a profit of 50000 by using the plan t. What plant value should be shown in the accounting equation? 0 1 2 3 4

I do not want to answer this Question 300,000 50,000 25,000 None of the above

15.A business has assets of Rs.44,312 and owners money Rs.13,210. What is the am ount of liabilities ? 0 1 2 3 4

I do not want to answer this Question 31,102 57,522 44,312 None of the above

16.A stared business with 50,000; Purchased old books on credit = 50000; Purchas ed shares for cash = 30,000; Sold all old books at a premium of 50%. Find Networ th. 0 1 2 3 4

I do not want to answer this Question 75000 35,000 50,000 100,000

17.Altd purchased goods for $ 5000 and incurred Rs 1000 as expenses. Sold 75% of the goods at profit of 20% on sales. Profit earned is: 0 1

I do not want to answer this Question 5625

2 3 4

5400 5250 none of the above

18.Purchase of raw materials on credit results in 0 1 2 3 4

I do not Increase Decrease Decrease Decrease

want to answer this Question in assets and increase in liability in capital and increase in liability in assets and increase in liability in assets and decrease in liability

19.Assets of a business are Rs.21,315 and liabilities Rs.4,120. What is the amou nt of owners money ? 0 1 2 3 4

I do not want to answer this Question 21315 17195 25435 4120

20.Which of the following is an accounting equation ? 0 1 2 3 4

I do not want to answer this Question Capital=Assets -Liabilities Assets = Liabilities + Capital Only A Both A & B

21.On 1st April Altd started business with cash $ 100,000. It availed 12% loan: $ 50000. Used the entire money for buying shares of Google ltd. At the end of th e six month 50% of the shares were sold at profit of 50%. Find the networth at t he end of the one year. 0 1 2 3 4

I do not want to answer this Question 137,500 131,500 125,000 100,000

22.On 1st April Altd started business with cash 100,000. It availed 12% loan: 50 000. Used the entire money for buying shares of Google ltd. At the end of the si x month 50% of the shares were sold at profit of 50%. Show the accounting equati on at the end of 6 months. 0 I do not want to answer this Question 1 Capital( 100,000) + Loan( 50,000) + Profit (34500)= Shares (75000) + Cas h (109,500) 2 Capital( 100,000) + Loan( 50,000)= Shares (150,000) 3 Capital( 100,000) + Loan( 50,000) + Profit (37500)= Cash (187500) 4 none of the above

23.Purchase of office equipment for cash results in 0 1 2 3 4

I do not Increase Increase Increase Increase

want to answer this Question in equipments and decrease in cash in equipments and increase in loan in assets and decrease in profits in assets and increase in liabilities

24.Capital of Altd. Rs.15000. 12% Loan: Rs.50000. Sales during the year: 100,000 , Expenses (other than interest)= 45%. Show the accounting equation at the end o f the year 0 1 2 3 4

I do not want to answer this Question 15,000 (capital) + 50,000(Loan) = 65000 (Cash) 15,000 (capital) + 50,000(Loan) +49000 (Profit)= 114,000 (Cash) 15,000 (capital) -49000 (loss)+ 50,000(Loan) = 16,000 (Cash) None of the above

25.A stared business with 50,000; Purchased old books on credit from X = 50000; Purchased shares for cash = 30,000; Sold all old books at a premium of 50%. Find profit and cash in hand. 0 1 2 3 4

I do Cash Cash Cash Cash

not want (75000); (55000); (25000); (50000);

to answer this Question Profit (25000) Profit (25000) Profit (75000) Profit (50000)

26.Capital = Rs.50000, Loan = 100000, FA = 50000, Investments = 20000 Stock = 80 000. During the month 50% of the stock sold at a profit of 20% on sales. Which o f the following is correct reflection of the accounting equation 0 I do not want to answer this Question 1 50000 (Cap)+ 100000 (loan)+10000 (profit) = 50000 (FA) + 20000 (Inv)+ 40 000 (Stock) + 50000 (Cash) 2 160000 (sources) = 160000 (assets) 3 160000 (sources) = 50000 (cash) + 110,000 (other Assets) 4 All of the above

27.Capital of Altd. Rs.15000. 12% Loan: Rs.50000. Show the accounting equation a t the end of the year assuming no sales during the year 0 I do not want to answer this Question 1 15,000 (capital) - 6000 (loss)+ 6000 (Interest Outstanding)+ 50,000(Loan ) = 65,000 (Cash) 2 15,000 (capital) + 50,000(Loan) - 6000 (loss)= 59,000 (Cash) 3 1 and 2 4 None of the above 28.Which of the following statements is correct with respect to the impact of de preciation on plant on the accounting equation? 0

I do not want to answer this Question

1 2 3 4

Networth + Liabilities = Assets Networth = Assets Liabilities Capital + Cash + Loan = Assets Capital + Profit + Loan = Assets

29.A stared business with 50,000; Purchased old books on credit = 50000; Purchas ed shares for cash = 30,000; Sold all old books at a premium of 50%. Find Networ th. 0 1 0) 2 0) 3 4

I do not want to answer this Question Capital (50000) + Profit (25000) + X (50000)= Cash (95000) +Shares (3000 Capital (50000) + Profit (25000) + X (50000)= Cash (75000) +Shares (3000 Capital (100000) + Profit (25000) = Cash (95000) +Shares (30000) Capital (75000) + X (50000)= Cash (95000) +Shares (30000)