Baseline quiz

Partner A contributes R30,000, and Partner B contributes R50,000. What is the total capital of the partnership?

• R80,000

• R20,000

• R60,000

• R100,000

• Partner A contributes equipment worth R20,000, while Partner B contributes R10,000 in cash and a vehicle worth R15,000. What is the total capital of the partnership?

• R45,000

• R40,000

• R35,000

• • R25,000

If a new partner, Partner C, joins with a R25,000 investment, and the existing capital is R90,000, what will the total capital be after Partner C’s contribution?

• R115,000

• • R100,000

• R105,000

• R95,000

A company’s assets total R500,000, and its liabilities are R300,000. What is the equity?

• R300,000

• • R200,00

• R100,000

• R400,000

• If a partnership takes out a loan of R40,000, which affects liabilities, how will the accounting equation be balanced?

• • Liabilities decrease by R40,000

• • Liabilities and Assets increase by R40,000

• Equity increases by R40,000

• • Assets and Equity increase by R40,000

• A company pays off R20,000 of its liabilities. What effect does this have on the accounting equation?

• • Decreases Assets and Liabilities by R20,000

• No change to the equation

• • Increases Liabilities and Equity by R20,000

• Increases Equity by R20,000

Partner A withdraws R15,000 from the partnership’s capital. The total capital before the withdrawal was R100,000. What will be the new capital balance?

• R90,000

• R75,000

• • R115,000

• R85,000

A company issues R100,000 worth of new shares to investors. What will be the effect on the accounting equation?

• • Liabilities increase by R100,000 and Equity decreases by R100,000

• • No change to the accounting equation

• Assets increase by R100,000 and Equity increases by R100,000

• Assets decrease by R100,000 and Equity decreases by R100,000

• A partnership purchases a new vehicle worth R60,000 on credit. How does this affect the accounting equation?

• Assets and Equity both increase by R60,000

• • Assets decrease by R60,000, and Liabilities increase by R60,000

• • Liabilities increase by R60,000, and Assets increase by R60,000

• Liabilities increase by R60,000, and Equity decreases by R60,000

• Partners A and B each have capital balances of R50,000. They earn a profit of R20,000, which they share equally. What will be Partner A’s new capital balance?

• R60,000

• R70,000

• R40,000

• R65,000