Accounting Equation

When the owner invested cash on the business, what account/s increase/s?

• assets and owner's equity

• assets only

• liabilities and assets

• owner's equity only

Is there an effect on the assets account when the owner withdraws cash for personal use?

• Yes, it decreases.

• Yes, it increases.

• Yes, it increases and decreases.

• None of the above

What would be the effect to the liabilities of the business after availing loan from Panata Bank?

• It remains the same.

• It decreases.

• It increases.

• None of the above

Mr. Kim has assets of Php1,000,000.00 and liabilities of Php 300,000.00 What is his equity?

• Php 700,000

• Php 1,300,000

• Php 800,000

• 0

The liabilities of Senshin’s Shop are Php 450,000 and his equity is Php 780,000. What is the business' total assets?

• Php 1,032,000

• Php 1,320,000

• Php 1,023,000

• Php 1,230,000