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XYZ Company provided services of OMR 35,000. The company received cash OMR 10,000 from customers, and it bills the balance of OMR 25,000 on account. How this transaction recorded in the accounting equation?

a.Decreases cash by OMR 10,000, decrease accounts receivable by OMR 25,000 and decreases revenue by OMR 35,000

b.Increases cash by OMR 25,000, increase accounts receivable by OMR 10,000 and increases revenue by OMR 35,000

c.Increases cash by OMR 10,000, increase accounts Receivable by OMR 25,000 and decreases revenue by OMR 35,000

d.Increases cash by OMR 10,000, increase Account Receivables by OMR 25,000 and increases revenue by OMR 35,000

Life span of an accounting period denotes to a period within which an entity elects to report the financial information. The life span of accounting is split into shorter and convenient period to find the operating result and financial position of an entity. Could you select the most convenient accounting period in every country of the world?

a.All the options

b.Quarterly

c.Semiannually

d.Annually

Identify transaction which leads to equal increase in assets and liabilities:

a.Computer purchased on account

b.Started business with cash

c.Land sold for cash

d.Paid advertisement expenses

Liability arises because of:

a.Cash purchase

b.Cash and credit purchase

c.Credit Purchase

d.None of the options

Increase in which of the following will cause increase in owners equity?

a.Expenses

b.Revenue

c.Owners' drawings

d.Loss

If the owner of the business invests capital, the assets of the business will _______________.

a.Never change

b.Increase

c.None of the given options

d.Decrease

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