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Accounting Equation

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Asset = Liability + (a)  

2.

 

what part of the accounting equation does this image represent?

a)

Assest

b)

Liabilities

c)

Owners Equity

d)

Loans

3.

what part of the accounting equation does this vehicle represent?

(a)  

4.

Which one from the list below doesn't represent the Accounting equation?

a)

A = OE + L

b)

A - L = OE

c)

A - OE = L

d)

OE = A + L

5.

Profit is the amount of money left over after all expensenses have been paid.

a)

True

b)

False

6.
The Accounting Equation must always be in balance? 
a)
True
b)
False
7.
Assets 
a)
Anything owed by the company
b)
Anything owned of value by the company
8.
In what accounting element can we classify INVENTORIES?
a)
Asset
b)
Liabilities
c)
Equity
9.

Accounts Receivable are a

a)

Asset

b)

Liability

c)

Equity

d)

Expense

10.

Mortgage is a....

a)

Asset

b)

Equity

c)

Liability

d)

Expense

11.

Another name for Inventory is....

a)

Inventories

b)

Stock

c)

Purchases

d)

Sales

12.
An amount owed by a business
a)
Liability
b)
Asset
c)
Owner's equity
d)
Revenue
13.

Assets = Liabilities + Owner's Equity

Assets - 182,000

Liabilities- 125,000

Capital- ?

a)

182,000

b)

125,000

c)

157,000

d)

57,000

14.

Assets = Liabilities + Owner's Equity

Assets - ?

Liabilities- 2,500

Capital- 10,000

a)

2,500

b)

12,500

c)

10,000

d)

7,500

15.

Assets = Liabilities + Owner's Equity

Assets - ?

Liabilities- 90,000

Capital- 200,000

a)

200,000

b)

290,000

c)

110,000

d)

90,000

16.

If Capital is R 31,400 and Liabilities are R 15,500, how much are Assets?

a)

R 46,900

b)

R 15,500

c)

R 15,900

17.

If Capital is R 27,500 and Liabilities are R 5,400, how much are Assets?

a)

R 32,900

b)

R 27,500

c)

R 22,100

18.

Assets=Liabilities-Capital is the accounting equation

a)

TRUE

b)

FALSE

19.

Define what an asset is ?

a)

The debt of the business.

b)

The profit accumulated in the business.

c)

The income and expenditure within the business.

d)

The possessions owned and used by the business.

20.

Calculate the missing information:

Assets R 74,000

Liabilities R 23,000

Owner’s equity?

a)

R 23,000

b)

R 51,000

c)

R 74,000

d)

R 97,000

21.
Shows the relationship among assets, liabilities, and owners equity. It is most often stated as: Assets = Liabilities + Owners Equity
a)
Accounting equation
b)
Accounting Records
c)
Accounting statements
d)
Accounting Net Loss
22.

Use the Accounting Equation to Solve (a)

(a)  

23.

Use the Accounting Equation to Solve (b)

(a)  

24.

Use the Accounting Equation to Solve (c)

(a)  

25.

Use the Accounting Equation to Solve (d)

(a)