351. Find out the value of assets if: Liabilities=\$5000 and Capital=\$1000
A. \$4000
B. \$6000
C. \$7000
D. \$3000

352. Calculate the amount of cash if: Total assets=\$10,000 Total liabilities=\$10,000 Total Capital=\$5000
A. \$6000
B. \$10,000
C. \$5000
D. \$1000

353. Capital increases if _________ increases?
A. Expenses
B. Drawings
C. Interest on capital
D. Revenue

354. Capital of a business decreases if there is an increase in___________?
A. Drawings
B. Income
C. Gains
D. Fresh capital

355. If the total liabilities of a business decrease by \$5000 what will be the effect on total asset?
(assuming the amount of capital remain same)

A. Remain constant
B. Decrease by \$5000
C. Increase by \$5000
D. Increase by \$10,000

356. If the business’s owner withdraws cash for his/her personal use what will be the effect on capital?
A. Increase in capital
B. Remain the same
C. Decrease in capital
D. No effect on capital

357. Net income equal to Revenues minus____________?
A. Gains
B. Depreciation
C. Expenses
D. Capital expenditures

358. Collection of account receivable will
A. Increase assets and decrease assets
B. Increase assets and decrease liabilities
C. Increase assets and increase capital
D. Increase assets and increase cash

359. Payment of expenses will ______ the assets
A. Increase
B. Reduce
C. apportion
D. Overstate

360. Which of the following is the practical implementation of the accounting equation?
A. Cash flow statement
B. Income statement
C. Statement of changes in equity
D. Statement of financial position

NOTE
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