0% 0 votes, 0 avg CH 1 [ Accounting Fundamentals QUIZ NO 1 ]Advertisements 1 / 22 1) A businessman purchased a vehicle for his private use by drawing cash frombusiness. This transaction is related to which of the following concept? A) Business entity concept B) Consistency concept C) Matching concept D) Prudence concept. 2 / 22 2) International Financial Reporting Standards (IFRS) are issued by: A) International Accounting Standard Board. (IASB) B) Generally Accepted Accounting Principles Board. (GAAP) C) International Accounting Standards Committee D) Financial Accounting Standards Board 3 / 22 3) At year end 31 December 2022, capital of a business was Rs. 40,000 Rs. During theyear assets increased by Rs. 20,000 and liabilities increased by Rs. 10,000. You arerequired to determine the capital of the business at the start of year i.e 1 January2022 A) Rs 10,000 B) Rs 70,000 C) Rs 30,000 D) Rs 60,000 4 / 22 4) 30% of the total assets of Akbar Merchant have been financed by Liabilities. Thetotal liabilities of the business are Rs600,000. What is the amount of owners’equity? A) 1,400,000 B) 1,800,000 C) 2,000,000 D) 2,600,000 5 / 22 5) The main sources of GAAPs in Pakistan are: A) Company Act 2017 B) IFRS C) Both a and b D) None of these 6 / 22 6) Started business without any investment is a business transaction? A) True B) False 7 / 22 7) IFRS means: A) Internal Financial Reporting Standards B) Internal Financial Reporting Standards C) International Final Reporting Standards D) International Financial Reporting standards 8 / 22 8) Total assets of a business will change as a result of:1. Credit Purchases2. Cash Purchases A) Only 1 is correct B) Only 2 is correct C) Both are correct D) None is correct 9 / 22 9) Which of the following about current liability is correct? A) Something owed by the business to someone else. B) Someone who owes money to business for goods purchased on credit C) An amount that has to be paid in short term (within 1 year) D) Both a and b 10 / 22 10) Definition of asset include: A) Unearned revenue B) Benefit in future C) Something owed by business D) Accrued expenses 11 / 22 11) Which of the following is/ are correct?1. Goods taken by owner from business reduce the equity.2. Personal Expenses of owner paid by business reduces the equity. A) Only 1 B) Only 2 C) Both are correct D) None is correct 12 / 22 12) Which of the following is/ are correct?1. Goods taken by owner from business reduce the equity.2. Expenses paid by business reduces the equity. A) Only 1 B) Only 2 C) Both are correct D) None is correct 13 / 22 13) What is the difference between net asset and total asset? Check 14 / 22 14) Which two of the following transactions will affect the assets and liabilities of thebusiness at the same time? A) Credit sale of inventory B) Receipt of cash from customer C) Purchase of office furniture on credit D) Repayment of principal amount of a loan 15 / 22 15) Which of these TWO transactions would cause immediate change in equity: A) Delivery truck bought on credit B) Repayment of loan from personal cash to save interest expense C) Borrowing from bank @12% D) Write down of inventory from cost to its NRV 16 / 22 16) Which of the following is/ are correct?1. The owner’s investment in business is a liability for the business.2. The withdrawal of cash by owner is expense according to business. A) Only 1 B) Only 2 C) Both are correct. D) None is correct 17 / 22 17) Equity will _______ as a result of decrease in assets or increase in liability A) Increase B) Decrease 18 / 22 18) Increase in liability and increase in capital results in A) Asset Increase B) Assets Decrease C) No impact D) None of these 19 / 22 19) Equity is residual interest in the assets of business after deducting current liabilities.Is this definition correct? A) Yes B) No 20 / 22 20) Son received money Rs 1,000,000 from his father. Is this a business transaction? A) Yes B) No 21 / 22 21) What are the generally accepted accounting principles in Pakistan? A) IFRSs B) Companies Act 2017. C) Both a and b D) None of these 22 / 22 22) Equity is also called? A) Net income B) Net assets C) Total assets D) All of these Your score isThe average score is 59% 0% Restart quiz Advertisements
