An asset was purchased for Rs. 5,00,000 with the down payment of Rs. 1,00,000 and bills adopted for Rs. 4,00,000. What would be the effect on the total asset and total liabilities in the Balance Sheet?
A. Assets increased by Rs. 4,00,000 and liabilities increased by Rs. 4,00,000
B. Assets decreased by Rs. 4,00,000 and liabilities decreased by Rs. 4,00,000
C. Assets decreased by Rs. 4,00,000 and liabilities increased by Rs. 4,00,000
D. Assets increased by Rs. 5,00,000 and liabilities increased by Rs. 4,00,000
Answer: Option A
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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