Question

In: Accounting

1-First Choice Trading PJSC has provided the following information : Assets as on 31.12.2018 Dhs 340...

1-First Choice Trading PJSC has provided the following information :

Assets as on 31.12.2018 Dhs 340 million , Liabilities Dhs 200 million. As on 31.12.2019 , If the assets increased by Dhs 30 million , Liabilities decreased by DHs 25 million , Equity as on 31.12.2019 should be -

195

200

140

135

Which of the following is not an internal users of accounting information ?

Employees

Vice President sales

Managing Director

External auditors

3- Which of the following item is example of asset

Sale of goods

Rent ( for current month)

Advance received from customers

Advance given to suppliers

4-Which of the following is an example of Liability ?

Sale of goods

Rent ( paid for current month)

Equipment

Loan from Bank

Assets = Liabilities + Equity

5- Which of the following statement correctly explain components of equity? Tick the most appropriate answer.

Equity simply means common stock

Equity = Contributed Capital + Retained Earnings ; Retained Earnings = Revenue -Expense - Dividend

Equity simply means common stock - treasury stock + Profit

Equity means common stock + profit

6- Which of the following describes trial balance

It measures profit of the business deducting expenses from income

It shows assets, liabilities and equity of the business

It shows cash flows of the business

It shows all ledger account balances classifying by debit and credit

7- First Choice PJSC has provided the following leader account balances : What should be total of debit or credit of the Trial Balance ( Amount in Dhs)?

Sales 560,000, Equipment 320,000, Bank Loan 200,000, Expenses 350,000, Common stock 120,000, Accounts Receivables 80,000 Inventory 120,000, cash 40,000, Accounts payable 30,000

910000

880000

920000

900000

8- Which of the following US company was found to be engaged in accounting fraud in 2001?

Enron accounting scandal

Wells Fargo Bank accounting manipulation

Worldcom scandal

Barnie Madoff Scandal

9 - Which of the following is thee correct journal entry for the following transaction ?

XYZ PJSC raised $ 100 million by issue of common stock

Cash Dr. $ 100 million

Common Stock. Cr. $ 100 million

Common Stock. Dr. $ 100 million

Cash. Cr $ 100 million

It is not an accounting transaction. so journal entry is required

Liability Dr. $ 100 million

Cash Cr $100 million

Solutions

Expert Solution

Answer is the images with the explanation.

ekkarill92 answered 1 year ago

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