Double entry implies that

A. Recording entries in journal
B. Recording entries in Ledger account
C. Recording two aspects of every transaction
D. Recording every transaction in books

Identify the nominal account

A. Machinery account
B. Building account
C. Creditors account
D. Rent expenses account

Which of the following accounts can be classified as a real account?

A. Rent expenses account
B. Rent income account
C. insurance expenses account
D. Cash account

Office equipments account is classified as _________ account?

A. Nominal
B. Real
C. Cash
D. Capital

The Basic accounting equation is___________?

A. Asset=Expense +Income
B. Assets=Cash+Capital
C. Assets=Capital+Liabilities
D. Assets=Expenses+Capital

Find out the value of assets if: Liabilities=$5000 and Capital=$1000

A. $4000
B. $6000
C. $7000
D. $3000

Calculate the amount of cash if: Total assets=$10,000 Total liabilities=$10,000 Total Capital=$5000

A. $6000
B. $10,000
C. $5000
D. $1000

Capital increases if _________ increases?

A. Expenses
B. Drawings
C. Interest on capital
D. Revenue

If the total liabilities of a business decrease by $5000 what will be the effect on total asset?

(assuming the amount of capital remain same)

If the business’s owner withdraws cash for his/her personal use what will be the effect on capital?

A. Increase in capital
B. Remain the same
C. Decrease in capital
D. No effect on capital