1. The accounting equation should remain in balance because every transaction affects how many accounts?

A) Only one
B) Only two
C) Two or more
D) All of given options



2. Which of the following is not a correct form of the Accounting Equation?

A) Assets = Claims
B) Assets = Liabilities + Owner Equity
C) Assets â?? Liabilities = Ownerâ??s Equity
D) Assets + Ownerâ??s Equity = Liabilities



3. Mr. â??Aâ? borrowed money from bank; this transaction involves which one of the following accounts?

A) Cash & Bank Loan
B) Bank & Debtors
C) Drawing & Cash
D) Cash & Bank



4. Find out value of account receivable from following Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs. 77,000?

A) Rs. 21,000
B) Rs. 41,000
C) Rs. 15,000
D) Rs. 110,000



5. On January 1st, 2009 an entity's balance sheet showed total assets of Rs. 750 and liabilities of Rs. 250. Owners' equity at January 1st was?

A) Rs. 750
B) Rs. 1,000
C) Rs. 500
D) Rs. 250