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WorksheetsAC C2 - The Accounting Equation
Total questions: 20
Worksheet time: 10mins
UND: Identify what the accounting equation is.
Assets= Owners Equity - Liabilities
Liabilities= Owners Equity + Assets
Assets= Owners Equity + Liabilities
Owners Equity= Assets + Liabilities
What are the two categories of liabilities?
Physical Liabilities
Long-term Liabilities
Current Liabilities
Changing Liabilities
The accounting equation will always balance.
True
False
How will you calculate profit?
Income - Expenses
Income + Expenses
Income x Expenses
Capital - Expenses
What will happen to liabilities when a business takes out a loan?
Loans will increase
No effect
Loans will decrease
Bank Overdraft is classified as:
Current Asset
Non Current Asset
Current Liability
Non Current Liability
What accounts are impacted by the following transaction:
Purchased $3 000 worth of stock on credit:
Decrease Bank/Increase Inventory
Increase Bank/Increase Inventory
Decrease Inventory/Increase Accounts Payable
Increase Inventory/Increase Accounts Payable
What accounts are impacted by the following transaction:
- Borrowed $12 000 from the Commonwealth Bank
Decrease Bank/Increase Loan
Increase Capital/Increase Loan
Increase Bank/Increase Accounts Payable
Increase Bank/Increase Loan
Owner brought a personal computer cost $1,800 to be used by the business
Cash increase $1,800
Computer increase $1,800
Capital increase $1,800
Capital decrease $1,800
Bought motor vehicle by loan from bank $70,000
Motor Vehicle increase $70,000
Motor Vehicle decrease $70,000
Cash at Bank decrease $70,000
Loan from Bank increase $70,000
a transaction in which goods and services are provided now and paid later is a ....
cash transaction
credit transaction
illegal transaction
theft
Customers that owe a business money are called
accounts payable
accounts receivable
assets
Liabilites
If a business buys furniture on credit, which 2 accounts are affected?
Cash in Bank & Furniture
Accounts Receivable & Furniture
Assets & Furniture
Accounts Payable & Furniture
The source document for a credit transaction is ...
a receipt
a cheque
a memorandum
an invoice
Suppliers that a business owes money are called ...
accounts receivable
accounts payable
liabilites
assets
Accounts receivable are treated as....
assets
liabilities
current assets
current liabilities
