Lesson 2 - The Accounting Equation

Open Ended

WARM UP:

If you own a car worth $10,000 but you still owe $7,000 on it, what part of the car is actually yours?

Multiple Choice

What is the correct form for the Accounting Equation?

• Assets = Liabilities + Owner's Equity

• Assets = Liabilities + Owner's Equity

• Assets - Liabilities = Owner's Equity

Multiple Choice

A company has Assets of $50,000 and Liabilities of $30,000. Owner's Equity =

• $20,000

• $80,000

• $30,000

Multiple Choice

True or False: Liabilities are what a business OWNS

• True

• False

Multiple Choice

The owner's claim to the Assets is called ...

• Cash

• Liability

• Owner's Equity