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Accounting Equation

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

What is the basic accounting equation?

(a)  

2.

_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date

a)

Balance Sheet

b)

Statement of Cash Flow

c)

Income Statement

d)

None of the Above

3.

Capital (owner's equity) is the value of the owners' investment in the business after subtracting liabilities from assets.

a)

True

b)

False

4.

Which of the following is not a liability

a)

Inventory

b)

Car loan

c)

Mortgage

d)

Credit card balance

5.

How do you find liabilities?

a)

Assets + Owner's Equity

b)

Liabilities - Assets

c)

Assets - Capital (Owner's Equity)

d)

None of the Above

6.

Define the term Owner's Equity

4 lines
7.

 

Which correctly shows a list of assets and liabilities?

a)

Assets: mortgage, car loan, land

Liabilities: retirement savings, cash, credit card loans

b)

Assets: building, cash in hand, accounts receivable

Liabilities: loans, accounts payable, mortgage

c)

Assets: creditors, prepaid expenses, loans

Liabilities: stocks, accounts receivable, car

d)

None of the above

8.

What must the owner's equity equal if assets equal $1,800 and liabilities equal $800?

a)

$2,600

b)

$800

c)

$1,000

9.

If liabilities equal $400 and owner's equity equals $800, what do the assets equal?

a)

$400

b)

$1,200

c)

$800

10.

Assets = Liabilities + Owner's Equity

Assets - 200,000

Liabilities- ?

Owner's Equity- 90,000

a)

$200,000

b)

$110,000

c)

$290,000

11.

If the company has $5,000 in cash and pays $3,000 in taxes, what is Owner's Equity?

a)

$2,000

b)

$15,000

c)

$8,000

12.

Taxes are an asset?

a)

True

b)

False

13.

Assets = Liabilities + Owner's Equity

Assets - 100,000

Liabilities- 25,000

Owner's Equity- ?

a)

$125,000

b)

$25,000

c)

$75,000

14.

Assets = Liabilities + Owner's Equity

Assets - ?

Liabilities- 25,000

Owner's Equity- 100,000

a)

$125,000

b)

$25,000

c)

$100,000

15.

The Accounting Equation must always be in balance? 

a)

True

b)

False

16.
The owner invests personal cash in business.
a)
Asset (I)
b)
Liabilties (I)
c)
Equity (NE)
17.
The owner withdraws business assets for personal use.
a)
Assets (I)
b)
Liabilities (D)
c)
Equity (D) 
18.
The company receives cash from a bank loan 
a)
Assets (I)
b)
Liabilities (D)
c)
Equity (D)
19.
The company repays the bank that had lent money
a)
Assets (I)
b)
Liabilities (D)
c)
Equity (D)
20.
The company purchases equipment with its cash
a)
Assets (NE)
b)
Liabilities (I)
c)
Equity (I)
21.
The owner contributes her personal truck to the business
a)
Assets (NE)
b)
Liabilities (NE)
c)
Equity (D)
22.
The company purchases supplies on credit
a)
Assets (I)
b)
Liabilities (NE)
c)
Equity (I)
23.
The company purchases land by paying half in cash and signing a note 
a)
Assets (NE)
b)
Liabilities (I)
c)
Equity (I)
24.
The owner withdraws cash for personal use
a)
Assets (D)
b)
Liabilities (D)
c)
Equity (NE)
25.
The company repays the suppliers
a)
Assets (D)
b)
Liabilities (I)
c)
Equity (D)
26.

If Assets are $7,300 and Liabilities are $500, how much is Capital?

a)

$7,800

b)

$7,300

c)

$6,800

27.

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

a)

$46,900

b)

$15,500

c)

$15,900

28.

If Assets are $19,500 and Capital is $14,300, how much are Liabilities?

a)

33,800

b)

$5,200

c)

$19,500

29.

If Assets are $40,000 and Liabilities are $23,000, how much is Capital?

a)

$63,000

b)

$17,000

c)

$23,000

30.

If Capital is $17,500 and Liabilities are $7,500, how much are Assets?

a)

$7,500

b)

$10,000

c)

$25,000

31.

If Liabilities are $15,425 and Assets are $32,350, how much is Capital?

a)

$16,925

b)

$15,425

c)

$47,775

32.

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

a)

$32,900

b)

$27,500

c)

$22,100

33.

If Assets are $15,500 and Capital is $9,600, how much are Liabilities?

a)

$5,900

b)

$15,500

c)

$25,100

34.

If Liabilities are $23,000 and Capital is $9,750, how much are Assets?

a)

$23,000

b)

$32,750

c)

$13,250

35.

If Assets are $17,300 and Liabilities are $6,300, how much is Capital?

a)

$11,000

b)

$17,300

c)

$23,600