The Accounting Equation Quiz
10 Questions
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Questions and Answers
- 1.The accounting equation is a mathematical principle?
- A.
True
- B.
False
- 2.What does the accounting equation form the basis for?
- A.
Single entry bookkeeping
- B.
Cash books
- C.
Double entry bookkeeping
- 3.What is the equation?
- A.
Assets equals liabilities plus equity
- B.
Assets equals income plus expenses
- C.
Assets equals the cash in the bank
- 4.Match the following.
- A. Assets
- A.
- B. Liabilities
- B.
- C. Equity
- C.
- 5.Tick some assets that a business can own.
- A.
Cash
- B.
Office Equipment
- C.
Loans
- D.
Subscriptions
- E.
Machinery
- F.
Vehicles
- G.
Overheads
- H.
Accounts Receivable
- 6.All the accounts under assets, liabilities and equity are called...
- A.
Variable
- B.
Permanent
- C.
Temporary
- 7.
- A.
Bank Loans
- B.
A building
- C.
Borrowed funds
- D.
Income
- E.
Acounts payable
- F.
Sales
- 8.What are accounts under revenue and expenses known as?
- A.
Variable
- B.
Permanent
- C.
Temporary
- 9.What accounting report are assets, liabilities and equity shown on?
- A.
Balance Sheet
- B.
Profit and Loss Statement
- C.
Loan Statement
- 10.What does the balance sheet indicate about the business?
- A.
The financial condition
- B.
That the business made a profit
- C.
The names of all the customers
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