Accounting Equation Quiz-1

Accounting Equation Quiz-1

Quiz

 

1. Purchase of Goods for cash is:-
   1.   Increase in cash and decrease in stock
   2.   Increase in stock and increase in cash
   3.   Decrease in stock and decrease in cash
   4.   Increase in stock and decrease in cash
2. Goods destroyed by fire costing ₹1500 selling price ₹2000.
   1.   Increase in stock by ₹2000 and increase in cash by ₹2000
   2.   Decrease in stock by ₹1500 and decrease in capital by ₹1500
   3.   Increase in stock by ₹2000 and increase in stock by ₹2000
   4.   Increase in stock by ₹1500 and decrease in creditor by ₹1500
3. Interest on capital provided is-
   1.   Increase in capital and increase in cash
   2.   Decrease in cash and decrease in capital
   3.   Increase in capital and decrease in assets
   4.   Increase in capital as well as decrease in capital
4. Goods Given as charity (Sales price ₹500) of ₹450.
   1.   Increase in debtor by ₹500 and increase in stock by ₹500
   2.   Decrease in cash by ₹500 and decrease in stock by ₹450
   3.   Decrease in stock by ₹500 and decrease in capital by ₹500
   4.   Decrease in stock by ₹450 and decrease in capital by ₹450
5. Purchase of furniture for cash is:-
   1.   Increase in furniture and increase in cash
   2.   Decrease in furniture and decrease in cash
   3.   Increase in cash and decrease in furniture
   4.   Increase in furniture and decrease in cash
6. Rent received in advance of ₹ 2000.
   1.   Increase in cash B ₹2,000 and increase in rent by ₹2000
   2.   Decrease in cash by ₹2,000 and decrease in rent ₹2000
   3.   Increase in cash by ₹ 2000 and increase in liability by ₹ 2000
   4.   Increase in cash by ₹2000 and decrease in creditor by ₹2000
7. Repayment of loan by cheque is-
   1.   Decrease in bank and decrease in liabilities
   2.   Decrease in cash and decrease in liabilities
   3.   Increase in asset and increase in creditor
   4.   Increase in bank and decrease in liabilities
8. Capital decreased when:-
   1.   Rent received
   2.   Goods purchased
   3.   Goods sold at a loss
   4.   Machinery purchased
9. Interest on Drawings-
   1.   Increase in cash and increase in income
   2.   Increase in capital and decrease in cash
   3.   Decrease in capital and increase in capital
   4.   Increase in cash and increase in capital
10. Further capital introduced is-
    1.   Increase in income and increase in cash
    2.   Increase in assets and decrease in income
    3.   Increase in cash and increase in capital
    4.   Decrease in cash and decrease in capital
11. Cash received from debtor is-
    1.   Increase in stock and increase in capital
    2.   Decrease in stock and decrease in capital
    3.   Decrease in debtor and increase in cash
    4.   Increase in stock and decrease in cash
12. Cash paid to creditor-
    1.   Increase in cash and increase in creditor
    2.   Decrease in cash and decrease in creditor
    3.   Increase in cash and increase in capital
    4.   Increase in capital and decrease in cash
13. Charged Depreciation on building is-
    1.   Increase in building and increase in capital
    2.   Increase in building and decrease in cash
    3.   Increase in building and increase in cash
    4.   Decrease in building and decrease in
       capital
14. Rent for the month of March not paid is-
    1.   Increase in liabilities and increase in asset
    2.   Decrease in cash and decrease in
       liabilities
    3.   Increase in asset and increase in cash
    4.   Increase in liabilities and decrease in capital
15. Insurance premium of ₹12,000 paid for one year on 1st August 2022, unexpired insurance premium is on 31st March,2023 will be-
    1.   ₹ 4,000
    2.   ₹ 5,000
    3.   ₹ 6,000
    4.   ₹ 7,000
16. Goods returned by customer is-
    1.   Increase in cash and increase in stock
    2.   Decrease in cash and decrease in stock
    3.   Increase in creditor and increase in stock
    4.   Increase in stock and decrease in debtor
17. Goods withdrawn for personal use :-
    1.   Increase in stock and increase in capital
    2.   Decrease in stock and decrease in capital
    3.   Increase in stock and increase in cash
    4.   Increase in stock and decrease in cash
18. Rent received is-
    1.   Increase in cash and increase in capital
    2.   Increase in cash and decrease in capital
    3.   Increase in capital and decrease in cash
    4.   Increase in liability and increase in cash
19. Goods returned to supplier costing ₹1000 and selling Price ₹1100.
    1.   Increase in creditor by ₹1000 and increase in stock by ₹1000
    2.   Decrease in cash by ₹1100 and decrease in stock by ₹1000
    3.   Increase in creditor by ₹1100 and increase in stock by ₹1100
    4.   Decrease in stock by ₹1000 and decrease in creditor by ₹1000
20. Capital increased when:-
    1.   Goods Purchased
    2.   Rent paid
    3.   Commission received
    4.   Goods loss by fire