If total assets are Rs 5,00,000 and outside liabilities are Rs 2,00,000, what is the owner's equity? MCQ with Answer and Explanation

Question
If total assets are Rs 5,00,000 and outside liabilities are Rs 2,00,000, what is the owner's equity?
A. Rs 3,00,000
B. Rs 7,00,000
C. Rs 2,50,000
D. Rs 2,00,000
Answer: Option A
Solution (By JKSSB Mock Tests)
According to the accounting equation (Assets = Liabilities + Equity), Equity = 5,00,000 - 2,00,000 = Rs 3,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
In a BRS, bank charges recorded twice in the Cash Book will result in:
A. Cash Book balance being lower than Pass Book balance
B. Pass Book balance being lower than Cash Book
C. No difference
D. Cash Book balance being higher than Pass Book balance
Discuss
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Correct Answer: Option A

Explanation:
Recording an expense twice in the Cash Book excessively reduces its balance, making it lower than the actual Pass Book balance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Survey' under Income Tax Act (Section 133A) is:
A. Visit by tax authorities to discover and collect information
B. Audit
C. A raid
D. Assessment
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Correct Answer: Option A

Explanation:
Survey is a verification of books at business premises without seizure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
PFMS stands for:
A. Public Financial Management System
B. Public Finance and Monetary System
C. Public Fund Monitoring System
D. Private Financial Management Scheme
Discuss
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Correct Answer: Option A

Explanation:
PFMS is the Public Financial Management System administered by the Department of Expenditure, Ministry of Finance, Government of India.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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