Quiz 1

Question 1 - Some of the financial items of Microsoft ltd as on 30th June 2009 were as follows: Assets = $ 71619 mn.; Capital =62382; Liabilities = 32061. Find Equity

Answer - 39558

Question 2 - Some of the financial items of Microsoft ltd as on 30th June 2009 were as follows: Assets = $ 71619 mn; Accumulated losses =$22824; Liabilities =32061. Suppose during the first quarter of the year the company raised capital of $ 4300 mn. Find capital at the end of the quarter.

Answer - 66,682

Question 3 - The accounting equation of Microsoft as on 30th June 2008 was as follows: Assets ( 68072) =Equity ( 36286) + Liabilities (31786).Find equity if the company pays off 30% of the liabilities.

Answer - 36286

Question 4 - Purchased goods =50,000 on credit; Sold 50% of the goods at a profit of 20% on sales. Entire sales was for cash. Paid salaries for the period = 5000; Interest due but not paid=1000. Find profit.

Answer - 1250

Question 5 - A company buys land for cash. What will be the impact on the accounting equation:

Answer - Decrease in cash and increase in assets

Question 6 - Purchased goods =50,000 on credit; Sold 50% of the goods at a profit of 20% on sales. Entire sales was for cash. Paid salaries for the period = 5000; Interest due but not paid=1000. Find Cash.

Answer - 26250