Accounting Quiz

Which of the following is not an essential factor in determining the existence of an asset?

• present obligation

• control over the economic resource

• the presence of an economic resource that resulted from past events

• the presence of an economic resource to produce economic benefits for the entity

Which of the following is incorrect concerning equity?

• It is a residual amount.

• It is equal to Assets minus Liabilities.

• It is different from net worth or net asset.

• It represents the owner’s claim against the total economic resource of the business.

These are your present obligations that result from past events and can require you to give up economic resources when settling them.

• Assets

• Equity

• Expenses

• Liabilities

Which of the following is not a correct variation of the Accounting Equation?

• Assets = Equity + Liabilities

• Assets – Equity = Liabilities

• Liabilities + Assets = Equity

• Equity = Assets – Liabilities

If a sari-sari store owner has assets worth ₱20,000 and liabilities of ₱8,000, what is their equity?

• ₱8,000

• ₱12,000

• ₱20,000

• ₱28,000

If the Assets are P650,000, and the Equity is worth P300,000. How much is the Liabilities?

• P950,000

• P350,000

• P300,000

• P900,000

A bakery has:

₱15,000 worth of baking equipment

₱7,000 worth of baking supplies

₱3,000 cash.

If the bakery's equity is ₱20,000, how much are their assets?

• P5,000

• P15,000

• P20,000

• P25,000

Mang Tomas owns a rice farm. He has:

₱20,000 worth of farming equipment

₱8,000 worth of harvested rice

He has a loan of ₱12,000 from a cooperative.

What is Mang Tomas' equity?

• P15,000

• P16,000

• P25,000

• P40,000

Which part of the accounting equation is directly affected if a farmer takes a loan to buy a new water pump?

• Assets only

• Liabilities only

• Both assets and liabilities

• Equity only

Which of the following is NOT a practical application of the accounting equation in daily life in Dingras?

• Managing household expenses.

• Calculating the distance to Manila.

• Tracking inventory for a sari-sari store.

• Planning for a farmer's crop investment.