1 Which of the following statements is false regarding capital account?
Capital is one of the company's internal sources of financing
Capital at the end of the period represents net equity
The capital at the end of the period is equal to the difference between assets and liabilities
Personal withdrawals will increase the capital at the end of the period
Nothing mentioned
Capital at the end of the period represents net equity
The capital at the end of the period is equal to the difference between assets and liabilities
Personal withdrawals will increase the capital at the end of the period
Nothing mentioned
2 When the owner of the company withdraws goods that were evaluated at the selling price, the following entry will be recorded?
From h/ purchases to h/ personal withdrawals
From h/ personal withdrawals to h/ purchases
From h/ sales to h/ personal withdrawals
From h/ personal withdrawals to h/ sales
From h/ personal withdrawals to h/ purchases
From h/ sales to h/ personal withdrawals
From h/ personal withdrawals to h/ sales
Nothing mentioned
3 Which of the following statements is false regarding the personal withdrawal account?
The personal withdrawal account is a temporary account
It is a type of expense
Withdrawals account represents the value of what employers withdraw for their personal purposes
It is closed in the capital account in theory
Nothing mentioned
It is a type of expense
Withdrawals account represents the value of what employers withdraw for their personal purposes
It is closed in the capital account in theory
Nothing mentioned
4 Which of the following statements is considered incorrect in relation to the calculation of loans?
Loans are one of the external sources of cash
The value of the loan represents the value of financing owed by the company from others
The loan account is a permanent account
The usurious interest on the loan is deducted from the revenues at the end of the financial period
Nothing mentioned
The value of the loan represents the value of financing owed by the company from others
The loan account is a permanent account
The usurious interest on the loan is deducted from the revenues at the end of the financial period
Nothing mentioned
5 How is the entry of a partner’s contribution to his capital in the form of fixed assets written?
From h/capital to h/fixed assets
No entry is registered
From h/ fixed assets to h/ capital
From h/ fund to h/ capital
Nothing mentioned
No entry is registered
From h/ fixed assets to h/ capital
From h/ fund to h/ capital
Nothing mentioned
6The withdrawals of the owner of the company from cash and in-kind amounts during the financial period amounted to $5000, and before the end of the financial period half of the amount was paid to the company. If you know that the company made profits of $50,000 during the period and the capital at the beginning of the period equaled $10,000, what are the net property rights in end of the financial period?
$50,000
$45,000
$55,000
$57,500
Nothing mentioned
$45,000
$55,000
$57,500
Nothing mentioned
7 If the owner of the company reduces the capital by withdrawing the fixed assets from the company, the following entry will be recorded:
From h/capital to h/fixed assets
From h/ fixed assets to h/ capital
From h/ personal withdrawals to h/ fixed assets
From h/capital to h/personal withdrawals
From h/ fixed assets to h/ capital
From h/ personal withdrawals to h/ fixed assets
From h/capital to h/personal withdrawals
Nothing mentioned
8 If Wael (the owner of the company) pays his house electricity bill in cash from the company’s fund, then is the account debited?
Electricity expenses
box
Personal withdrawals
loans
Nothing mentioned
box
Personal withdrawals
loans
Nothing mentioned
A9 On 01/07/2015, the company borrowed $10,000 at an annual interest rate of 10%.
So, the interest rate on the loan for the year 2015 will be equal to?
$1000
$500
$2000
$5,000
Nothing mentioned
$500
$2000
$5,000
Nothing mentioned
10 The company borrowed $50,000 on 01/01/2010, to be repaid over 5 years.
With a usurious interest of 10% annually on the entire amount, then the total interest paid over 5 years is equal to:
25,000
5000
10,000
15,000
Nothing mentioned
5000
10,000
15,000
Nothing mentioned
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