Accounting Equation (Assessment)

Which is the accounting equation?

• assets= liabilities + equity

• liabilities = assets + equity

• equity = assets + liabilities

• assets = revenue - expenses

What are the resources owned by the owners?

• equity

• liabilities

• revenues

• assets

Which term refers to the obligations of the business?

• liabilities

• assets

• revenues

• equity

Which refers to the remaining amount of the assets after paying all the company’s liabilities?

• revenues

• equity

• expenses

• net profits

What does an extended accounting equation include?

• revenues and expenses

• revenues and assets

• expenses and liabilities

• none of the above

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

• assets and equity

• assets only

• liabilities and assets

• 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

8. What would be the effect on the liabilities of the business after availing loan from BDO Rural Bank?

• It remains the same.

• It decreases.

• It increases.

• None of the above

Mr. Japh 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 Emily's Shop are Php 450,000 and his equity is Php 780,000. What is the business's total asset?

• Php 1,032,000

• Php 1,320,000

• Php 1,023,000

• Php 1,230,000