The Accounting Equation Quiz

10 Questions

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Quadratic Equation Quizzes & Trivia

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