The Accounting Equation Quiz

10 Questions

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The Accounting Equation Quiz

This is a specifically fabricated test designed to assess how good your knowledge is about accounting. It might not be as easy as you think but just try it out to see how you will do.


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. 
    Tick some of the liabilities that a business can owe.
    • 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