Principles of Accounting

Increase in Asset & Owner’s Liability

Decrease in Asset & Owner’s Liability

Increase in Liability & Owner’s Liability

Decrease in Liability & Increase in Owner’s Liability

Assets and liabilities

Liabilities and Withdrawals

Revenues and Capital

Capital and expenses

an event

a transaction

a transaction as well as an event

neither a transaction nor an event

An event

A transaction

A transaction as well as an event

Neither a transaction nor an event

Accounting profit is the difference between cash receipts and cash paid in a period.

Accounting profit is the total of cash sales in the year less the expenses for the period.

Accounting profit is the difference between revenue income and expenses for the period.

Accounting profit is the difference between revenue income and cash payments for the period.

Personal A/C

Real A/C

Nominal A/C

None

Pharma Industry

Cement Industry

Iron Industry

All of the above

Liability is limited to the providers of loan finance and only the trader takes an active part in managing the business.

The trader has unlimited liability and runs the business in conjunction with the providers of loan finance.

The trader has unlimited liability and must have the business accounts audited.

The trader has unlimited liability, takes sole responsibility for management of the busines.

It shows the financial position of a business.

All the balances in the trial balance will be summarized on the business balance sheet.

It is a list of balances and forms the starting point for the preparation of the business accounts.

None of the above.

Assets and expenses

Assets and liabilities

Liabilities and Owner’s Equity

Revenue and expenses