Generally Accepted Accounting Principles and Cash
Q.No.1. (A). Encircle the correct answer. Marks (20*1) (Time Allowed 20 Min)
1. Resources owned by business are known as: a. Assets b. Expenses c. Liabilities d. Income 2. Amount withdrawn from business is recorded as: e. Drawings f. Capital g. Liabilities h. none 3. Assets minus capital equals to: i. Assets j. Capital k. Liability l. None 4. The payment of business debts: m. Has no effect on owners’ equity n. Increase assets o. Decrease liabilities p. none of the above 5. Which of the following is not an asset: q. cash r. equipment s. notes receivable t. all are assets 6. Both assets and owner’s equity would be increased by: u. Drawings v. Purchase of machinery on credit w. Payment of creditors x. Profit earned retained in business 7. The amount brought in by the proprietor in the business should be credited to: y. Cash account z. Salaries account {. Capital account |. Drawings account 8. Sales made to mahmood for cash should be debited to : }. Cash account ~. Mahmood account . Sales account . None 9. Balance sheet shows the : . Financial position of business . Financial performance of business . Profit of business . none of the above 10. Income statement shows the : . Financial position of business . Financial performance of business . Profit of business . None 11. sales are equal to: . CGS + profit . CGS - G.P . G.P - CGS . None 12. G.P is equal to: . Sales – closing stock . Purchases – closing stock . Sales - CGS . none 13. Cost of goods sold is equal to: . Sales – G.P . Sales - Purchases . Sales – closing stock . None 14. Cash account will
1. Resources owned by business are known as: a. Assets b. Expenses c. Liabilities d. Income 2. Amount withdrawn from business is recorded as: e. Drawings f. Capital g. Liabilities h. none 3. Assets minus capital equals to: i. Assets j. Capital k. Liability l. None 4. The payment of business debts: m. Has no effect on owners’ equity n. Increase assets o. Decrease liabilities p. none of the above 5. Which of the following is not an asset: q. cash r. equipment s. notes receivable t. all are assets 6. Both assets and owner’s equity would be increased by: u. Drawings v. Purchase of machinery on credit w. Payment of creditors x. Profit earned retained in business 7. The amount brought in by the proprietor in the business should be credited to: y. Cash account z. Salaries account {. Capital account |. Drawings account 8. Sales made to mahmood for cash should be debited to : }. Cash account ~. Mahmood account . Sales account . None 9. Balance sheet shows the : . Financial position of business . Financial performance of business . Profit of business . none of the above 10. Income statement shows the : . Financial position of business . Financial performance of business . Profit of business . None 11. sales are equal to: . CGS + profit . CGS - G.P . G.P - CGS . None 12. G.P is equal to: . Sales – closing stock . Purchases – closing stock . Sales - CGS . none 13. Cost of goods sold is equal to: . Sales – G.P . Sales - Purchases . Sales – closing stock . None 14. Cash account will