Accounting quize

What is the fundamental accounting equation?

• A) Assets = Liabilities

• B) Assets = Owner's Equity
  

• C) Assets = Revenues

• 1. D) Liabilities = Owner's Equity

  
  

If a company's assets are R50,000 and its liabilities are R20,000, what is the owner's equity?

• R30000

• R40000

• R50000

• R20000

In the accounting equation, which of the following represents the resources owned by a business?

• Assets

• Owner's equity

• Liabilities

• Expenses

If a company's owner's equity is R60,000 and its liabilities are R25,000, what are its assets?

• R35000

• R60000

• R85000

• R25000

What is the purpose of a balance sheet?

• The purpose of a balance sheet is to measure the market value of a company's assets.

• The purpose of a balance sheet is to forecast future financial performance of a company.

• The purpose of a balance sheet is to provide a snapshot of a company's financial position at a specific point in time.

• The purpose of a balance sheet is to track the daily expenses of a company.

Which financial statement shows the revenues and expenses of a company?

• balance sheet

• cash flow statement

• statement of retained earnings

• income statement

Which of the following transactions would increase both assets and owner's equity?

• A) Borrowing money from a bank

• B) Purchasing inventory on credit

• C) Selling products for cash

• D) Paying rent

When a business generates revenue by providing services to customers on credit, how does this affect the accounting equation?

• A) It increases assets and liabilities.

• B) It decreases assets and owner's equity

• C) It increases assets and owner's equity.
  

• 1. D) It decreases liabilities and owner's equity.

  
  

If a company's liabilities are R15,000, and its owner's equity is R35,000, what are its assets?

• R20000

• R50000

• R15000

• R35000

If a company's owner's equity is R40,000, and its assets are R60,000, what are its liabilities?

• R100000

• R20000

• R60000

• R80000