_______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?
(A) Depreciation
(B) Drawings
(C) Outflow of cash
(D) Appreciation
Identify the asset from the following:
(A) Cash and cash equivalent
(B) Creditors
(C) Notes payable
(D) Bank loan
What is equity?
(A) Cash from the business
(B) liability of a business
(C) Owner’s claim on total assets
(D) Owner’s claim on total liabilities
What is the basic accounting equation?
(A) Capital+Liabilities=Assets
(B) Assets+ liabilities =Capital
(C) Capital+assets=liabilities
(D) Liabilities+Capital
Which of the following statements is incorrect regarding capital account?
(A) Debit increases the capital account balance
(B) Credit increases the capital account balance
(C) Fresh capital increases the capital account balance
(D) Net income increases the capital account balance
The normal balance of liability account is____________?
(A) Debit balance
(B) Credit balance
(C) Cash balance
(D) Neither debit nor credit balance
The normal balance of asset account is____________?
(A) Credit balance
(B) Debit balance
(C) Cash balance
(D) Neither debit nor credit balance
The normal balance of capital account is_____________?
(A) Credit balance
(B) Debit balance
(C) Cash balance
(D) Neither debit nor credit balance
If debit balance is greater than creadit balance then the account blance will be__________?
(A) Credit balance
(B) Debit and credit balance
(C) Cash balance
(D) Debit balance