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WorksheetsAccounting equation
Total questions: 23
Worksheet time: 12mins
if capital is added in the business it will (a) the asset side
Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and capital (C)?
A = L + R + E + C
A = C + L + (R-E)
A = C - (R - E) + L
A = (L - C) + (R - E)
Additional capital introduced in the business will increase..................... and .....................
Liabilites and capital
Land and Capital
Assets and Capital
Assets and Liabilities
which of the following will cause owner"s equity increase ?
Expense
Owner Drawee
Revenue
Loss
The liability of form h 4000 the capital of proprietor is 8000 the total assets are
8000
4000
12000
None of these
If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be
Rs 100,000
Rs 80,000
Rs 120,000
Rs. 20,000
Assets and liabilities increase when the company purchases supplies on account
True
False
Amount withdrawn by proprietor for personal use will....... Cash and capital
Increase
Decrease
Not change
None of these
Difference between Assets and Liabilities is
Liabilities
Cash
Capital
Drawings
Consider the following data?
Rs. 4,90,000
Rs. 5,50,000
Rs. 4,40,000
Rs. 3,80,000
Assets, liabilities and owner's equity are the components of the accounting equation.
True
False
There is an increase in liability when you buy equipment on account.
True
False
Goods Purchased on credit will increase the
Liability
Capital
Debtor
Drawings
A decrease in asset could be explained either by a decrease in liabilities or a decrease on owner's equity.
True
False
in accounting equation assets are equal to equities. what are equities of a firm
assets
liabilities
liabilities+ capital
none of the above
What is the accounting equation?
assets = liabilities + owner's equity
liabilities = assets + owner's equity
owner's equity = assets + liabilities
assets = revenue - expenses
Goods purchased on credit will lead to...... in stock and creditors
Increase
Decrease
None of these
is furniture is purchased on credit, it will (a) liability.
The accounting equation should remain in balance because every transaction affects how many accounts?
Only one
Only two
Two or more
All of given option
An accounting equation is based on ......... principle
Revenue recognition
Verifiable objective
Money measurement
Dual
Calma partially paid Php15,000.00 for the purchase of computer supplies on account. What is its effect on the accounting equation?
Increase in liabilities = Decrease in Owner's equity
Decrease in Assets = Decrease in Liabilities
Increase in one Asset = Decrease in another Asset
Increase in Asset = Increase in Liabilities
If there is a PhP 500,000-worth of assets and PhP 200,000 worth of liabilities, then there is PhP 300,000 worth of owner's equity.
True
False
