MCQOPTIONS
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MCQOPTIONS
This section includes 3 Mcqs, each offering curated multiple-choice questions to sharpen your Accounting And Auditing knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Investment by the owner would result in ____________ in capital and increase in __________. |
| A. | Increase; liability |
| B. | Decrease; liability |
| C. | Increase; asset |
| D. | Decrease; asset |
| Answer» B. Decrease; liability | |
| 2. |
Given:If the total assets of a business are Rs. 1,80,000 and total outside liabilities are Rs. 50,000, the net worth of the firm will be ___________. |
| A. | Rs. 1,30,000 |
| B. | Rs. 2,30,000 |
| C. | Rs. 1,80,000 |
| D. | Rs. 50,000 |
| Answer» B. Rs. 2,30,000 | |
| 3. |
Identify the transaction that will result in decrease in owner’s equity and increase in liabilities. |
| A. | Issue of bonus shares |
| B. | Shares issued in payment of bills payable |
| C. | Shares issued for purchase of land and building |
| D. | None of the above |
| Answer» E. | |