07. What is the major factor that should be considered when establishing a retail shop? 1. the facilities for storing goods
2. the distance to the factory
3. a place for the customers to resort to
4. transport facilities
08. select the answer which includes assets only,
1. bank, creditors, building
2. furniture , cash , motor vehicle
3. bank loan, debtors, land
4. bank overdraft, creditors, purchase
09. Selecte the answer which shows the basic accounting equation correctly.
1. Assets + Liability = Equity
2. Assets - Income = Equity
3. Assets + Equity = Liability
4. Equity + Liability = Assets
10. Because of paying employee salaries of Rs. 10 000 in a business.
1. assets decrease by Rs. 10 000 and equity increase by Rs. 10 000
2. assets decrease by Rs. 10 000 and equity decrease by Rs. 10 000
3. assets increase by Rs. 10 000 and liabilities increase by Rs. 10 000
4. equity decreases by Rs. 10 000 and liabilities increase by Rs. 10 000
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