Accounting Equation

Assets = Liabilities + Owner's Equity

Assets - ?

Liabilities- 25,000

Owner's Equity- 100,000

• $125,000

• $25,000

• $100,000

What is the basic accounting equation?

• Assets = Liabilities + Owner's Equity

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities * Owner's Equity

• Assets = Liabilities / Owner's Equity

If a company's assets are $150,000 and liabilities are $50,000, what is the owner's equity?

• $100,000

• $200,000

• $50,000

• $150,000

Which of the following represents the owner's claim in the accounting equation?

• Owner's Equity

• Liabilities

• Assets

• Revenue

In the accounting equation, if liabilities increase by $10,000, what happens to assets if owner's equity remains unchanged?

• Assets increase by $10,000

• Assets decrease by $10,000

• Assets remain unchanged

• Assets decrease by $5,000

If a business has assets of $200,000 and owner's equity of $120,000, what are the liabilities?

• $80,000

• $120,000

• $200,000

• $320,000

Which component of the accounting equation represents what the business owes to others?

• Liabilities

• Assets

• Owner's Equity

• Revenue

If a company's liabilities are $70,000 and owner's equity is $130,000, what are the assets?

• $200,000

• $60,000

• $130,000

• $70,000

What happens to the accounting equation if a company takes out a loan?

• Liabilities increase, Assets increase

• Liabilities decrease, Assets increase

• Owner's Equity increases, Assets decrease

• Liabilities increase, Owner's Equity decreases

If assets are $500,000 and liabilities are $300,000, what is the owner's equity?

• $200,000

• $800,000

• $300,000

• $500,000