Accounting Equation and Basic Accounts Quiz

The accounting equation is:

• Assets = Liabilities + Owner’s Equity

• Assets = Liabilities – Owner’s Equity

• Assets + Liabilities = Owner’s Equity

• Assets – Owner’s Equity = Liabilities

Which of the following is an asset account?

• Supplies

• Accounts Payable

• Owner’s Capital

• Rent Expense

Which of the following is a liability account?

• Accounts Payable

• Cash

• Owner’s Drawing

• Supplies

Owner’s Equity is affected by all of the following except:

• Buying Supplies on Account

• Additional Investments

• Revenues

• Expenses

Which of the following increases owner’s equity?

• Owner Investment

• Paying Rent

• Paying Wages

• Buying Supplies

The value of all things owned (assets) is equal to:

• Liabilities + Owner’s Equity

• Liabilities – Owner’s Equity

• Cash on Hand

• Owner’s Capital only

Which account is NOT an asset account?

• Supplies

• Cash

• Accounts Payable

• Equipment

Which of the following is an example of an expense?

• Rent Expense

• Owner’s Capital

• Cash

• Accounts Receivable

Which of the following is NOT included in the basic accounting equation?

• Assets

• Liabilities

• Owner’s Equity

• Revenues

Which of the following transactions would increase assets?

• Receiving cash from customers

• Paying rent

• Paying wages

• Buying supplies on account