
Accounting Equation & Common Accounting Formulas
Authored by ANDRES BARRAGAN
Business
11th Grade
Used 1+ times

AI Actions
Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...
Content View
Student View
8 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the basic accounting equation for a sole proprietorship?
Assets = Liabilities + Owner's Equity
Assets = Liabilities x Owner's Equity
Assets = Liabilities - Owner's Equity
Assets = Owner's Equity - Liabilities
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the accounting equation, what does equity represent in a publicly held corporation?
Owner's Equity
Partner's Equity
Shareholder's Equity
Investor's Equity
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a component of the accounting equation?
Assets
Equity
Liabilities
Revenue
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of the double-entry accounting system?
To increase the number of accounts
To simplify the accounting process
To balance the accounts by having corresponding debit and credit entries
To ensure each transaction is recorded twice
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is gross profit calculated?
Sales - Cost of Goods Sold
Sales + Cost of Goods Sold
Sales x Cost of Goods Sold
Sales / Cost of Goods Sold
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the current ratio measure?
The ratio of liabilities to equity
The ratio of sales to expenses
The ratio of assets to liabilities
The ratio of profit to sales
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which formula is used to calculate the break-even point?
Fixed costs - (Sales price per unit / Variable cost per unit)
Fixed costs x (Sales price per unit + Variable cost per unit)
Fixed costs / (Sales price per unit - Variable cost per unit)
Fixed costs + (Sales price per unit - Variable cost per unit)
Access all questions and much more by creating a free account
Create resources
Host any resource
Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever
or continue with

Microsoft
%20(1).png)
Apple
Others
Already have an account?