Accounting Equation

The basic accounting equation

• Liabilities = Assets - Equity
• Assets - Liabilities = Equity
• Assets = Liabilities + Equity
• Assets + Liabilities = Equity

Present economic resources controlled by the identity as a result of past events and has the potential to produce economic benefits

• Liability
• Expense
• Revenue
• Asset

What is the term for the obligation of a company to transfer economic benefits as a result of past transactions?

• Liability

• Equity

• Revenue

• Asset

What is the term for the residual interest in the assets of an entity after deducting liabilities?

• Liability

• Revenue

• Asset

• Equity

ASSETS = LIABILITIES + CAPITAL

1,200,000 = 800,000 + ________

Other term for "CAPITAL"

It is the basic storage of information in accounting.

• account

• transactions

When a company purchased a vehicle on cash basis, the affected elements are:

• Assets and Capital

• Assets and Liabilities

• Assets only.

• Liabilities and Capital

If the company's assets, liabilities and capital has the balance of 1,000,000, 200,000 and 800,000 respectively, how much will be the new balance of assets if the company bought appliances on credit for 185,000?

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

• Assets

• Income

• Equity

• Expenses