What is equity?

Related Mcqs:

1. Which of following best describes the increase in equity expands___________?

   A. Business operations
   B. cash outflows
   C. Inflows of cash
   D. Appropriation expenses

2. The person to whom goods are sold on credit is called___________?

   A. Buyer
   B. Seller
   C. Debtor
   D. Creditor

3. Which of the following is known as an evidence that a transaction took place?

   A. Cash receipts journal
   B. General journal
   C. Source document
   D. Cash book

4. An account records the ___________ in the balance of an item?

   A. Increase
   B. Decrease
   C. Increase or decrease
   D. Appreciation

5. Payment of expenses will ______ the assets

   A. Increase
   B. Reduce
   C. apportion
   D. Overstate

6. The first step in accounting process is___________?

   A. Recording the transaction
   B. Identifying the transaction
   C. Posting the transaction
   D. Preparing the source documents

7. Which of the following should not be treated as revenue expenditure?

   A. Interest on loans and debentures
   B. Annual fire insurance premiums on Plant and Equipment
   C. Sales tax paid in connection with the purchase of office equipment
   D. Small expenditures on long- lived assets, such as ` 20 for a paper weight.

8. The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?

   A. Interest Rate
   B. Required rate of return
   C. Nominal interest rate
   D. All of the above

   Submitted by: Maneesh kumar

9. Closing stock appearing in the Trial Balance is shown in:

   A. Trading A/c and Balance Sheet
   B. Profit and Loss A/c
   C. Balance Sheet only
   D. Trading A/c only

10. Standing orders are ________

    A. Credited in the cash book
    B. Debited in the cash book
    C. Entered in the bank statement
    D. Entered in the petty cash balance