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WorksheetsAccounting Equation
Total questions: 15
Worksheet time: 6mins
What is the basic accounting equation?
(a)
_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date
Balance Sheet
Statement of Cash Flow
Income Statement
None of the Above
Capital (owner's equity) is the value of the owners' investment in the business after subtracting liabilities from assets.
True
False
Which of the following is not a liability
Inventory
Car loan
Mortgage
Credit card balance
How do you find liabilities?
Assets + Owner's Equity
Liabilities - Assets
Assets - Capital (Owner's Equity)
None of the Above
Define the term Owner's Equity
Which correctly shows a list of assets and liabilities?
Assets: mortgage, car loan, land
Liabilities: retirement savings, cash, credit card loans
Assets: building, cash in hand, accounts receivable
Liabilities: loans, accounts payable, mortgage
Assets: creditors, prepaid expenses, loans
Liabilities: stocks, accounts receivable, car
None of the above
What must the owner's equity equal if assets equal $1,800 and liabilities equal $800?
$2,600
$800
$1,000
If liabilities equal $400 and owner's equity equals $800, what do the assets equal?
$400
$1,200
$800
Assets = Liabilities + Owner's Equity
Assets - 200,000
Liabilities- ?
Owner's Equity- 90,000
$200,000
$110,000
$290,000
If the company has $5,000 in cash and pays $3,000 in taxes, what is Owner's Equity?
$2,000
$15,000
$8,000
Taxes are an asset?
True
False
Assets = Liabilities + Owner's Equity
Assets - 100,000
Liabilities- 25,000
Owner's Equity- ?
$125,000
$25,000
$75,000
Assets = Liabilities + Owner's Equity
Assets - ?
Liabilities- 25,000
Owner's Equity- 100,000
$125,000
$25,000
$100,000
The Accounting Equation must always be in balance?
True
False
