Accounting Quiz

Which component is NOT part of the accounting equation?

• Assets

• Liabilities

• Owner’s Equity

• Revenue

Which term in the accounting equation represents what the business owns?

• Liabilities

• Owner’s Equity

• Assets

• Revenue

Which of the following is a fundamental principle of accounting?

• The marketing equation

• The accounting equation

• The sales equation

• The production equation

What happens to owner's equity when liabilities increase?

• It increases

• It decreases

• It remains the same

• It doubles

How can a business increase its owner's equity?

• By borrowing more money

• By reducing liabilities

• By selling assets

• By increasing liabilities

What can an account store information about?

• What you have or owe

• What you eat or drink

• What you see or hear

• What you read or write

How can you describe a Savings Account?

• A place to store your clothes

• A type of bank account for saving money

• A method to track your exercise routine

• A tool for organizing your schedule

What is the primary use of an Expense Account?

• To save money

• To track spending

• To earn interest

• To deposit checks

What are liabilities?

• Resources owned by the business

• Owner's rights to the business assets after liabilities

• Debts owed to outsiders

• Income generated by the business

Which type of account reflects the owner's rights to the business assets after liabilities?

• Liabilities

• Assets

• Owner's Equity

• Expenses