accounting equation

The Accounting Equation must always be in balance? 

• True
• False

Purchases from a supplier on credit is a liability.

• True
• False

The company purchases land by paying half in cash and signing a note payable for the other half..What is the effect on accounting equation?

• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land)  I  Inc. in Liability (NP)

The company purchases land by paying half in cash and signing a note payable for the other half..What is the effect on accounting equation?

• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land)  I  Inc. in Liability (NP)

Goods Purchased on credit will increase the

• Liability

• Capital

• Debtor

• Drawings

Additional capital introduced in the business will increase..................... and .....................

• Liabilites and capital

• Land and Capital

• Assets and Capital

• Assets and Liabilities

Difference between Assets and Liabilities is

• Liabilities

• Cash

• Capital

• Drawings

Properitor is a creditor of the business for.........................

• Capital

• Drawings

• Liabilities

• Cash

On January 1st, 2020 an entity's balance sheet showed total assets of Rs. 7,500 and liabilities of Rs. 2,500. Owners' equity at January 1st was?

• 7,500

• 10,000

• 2,500

• 5,000

If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be

• Rs 100,000

• Rs 80,000

• Rs 120,000

• Rs. 20,000