Accounting Quiz

What is the accounting equation?

• Liabilities = Assest + Owners Equity

• Assets = Owners Equity + Liabilites

• Owners Equity = Assets + Liabilities

Which account increases on the debit side but decreases on the credit side?

• Capital

• Owners Equity

• Assets

• Liabilites

True or False.

For every credit entry , theres a debit entry

• True

• False

What is the double-entry accounting system?

• A system where every transaction is recorded twice

• A system where only one entry is made for each transaction

• A system where transactions are recorded in a single account

True or false.

Drawings are what owners take out of the business for personal use

• TRUE

• FALSE

True or false.

Owners Equity Increases on the debit side?

• True

• False

True or false.

Current assets have a lifetime of 10 years?

• True

• False

Land and buildings is what TYPE of asset

Bank overdraft belongs to which account?

• Assets

• Liabilities

• Owners Equity

Debtors control goes under which account?

• Liabilities

• Assets

• Owners Equity

• Equipment