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Accounting Equation

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

Accounts receivable is a/an ______

a)

liability

b)

asset

c)

capital

2.

The basic accounting equation is ____

a)

assets + liabilities = capital

b)

assets = liabilities - capital

c)

assets = liabilities + capital

d)

assets - liabilities = capital

3.

Any "payable" account is _____

a)

a liability

b)

an asset

c)

a capital

d)

a revenue

4.

Find the missing amount:

Assets = 500,000

Liabilities = ?

Capital = 300,000

(a)  

5.

How much is your liability if your business' assets is P 250,000 and owner's equity is P 200,00?

(a)  

6.

The term that refers to the equity of the owners.

a)

asset

b)

revenue

c)

expense

d)

capital

7.

Prepaid expenses are part of _____

a)

assets

b)

expenses

c)

liabilities

d)

capital

8.

How much is your total assets if liabilities amount to P 25,000 and equity amounts to P 75,000?

(a)  

9.

Find the missing amount:

Equity = ?

Assets = P 35,000

Liabilities = P 12,000

(a)  

10.

What business transactions result to a decrease in capital?

a)

a. withdrawal by the owner

b)

b. purchase of an asset

c)

c. payment of expenses

d)

d. a and c

e)

e. b and c

11.

A business has a total assets of P 120,000. If 25% represents the equity of the creditor, how much is the equity of the owner?

(a)  

12.

Total investment to PayMonggo online payment services is P 45,000. If the total debt of the business is P 17,000, how much is the total asset?

(a)  

13.

Lei Fang Financial Agency has a total asset of P 3,215,000. The equity of the owner is P 2,150,000. How much is the equity of the creditors?

(a)  

14.

Maria dela Torre invested P 150,000 cash and P 130,000 worth of equipment to MDT Laundry. The business has total liability of P 80,000. Compute for the total assets.

(a)  

15.

The business has total assets of P280,000 and total liabilities of P80,000. Compute for the capital.

(a)  

16.

The term that refers to the liability of the creditors

a)

liability

b)

assets

c)

capital

d)

expenses

17.

State the effect of the business transaction:

Invested land and building to the business.

a)

increase in one form of asset accompanied by a decrease in another form of asset

b)

increase in assets accompanied by increase in liabilities

c)

increase in assets accompanied by an increase in capital

d)

increase in liability accompanied by a decrease in capital

18.

State the effect of the business transaction:

Purchase of supplies for cash.

a)

Decrease in liability accompanied by an increase in capital

b)

Increase in one asset with a corresponding decrease in another asset account

c)

Decrease in asset because of a decrease in capital

d)

Increase in assets accompanied by an increase in capital

19.

Bangbang Beauty Shop has assets amounting to P 650,000. Lea’s capital amounts to P 514,000. How much is the total liability?

(a)  

20.

Kampay Travel Agency's income for the month is P 1,520,000. It spent P 862,000 for operation. How much is the net income for the month?

(a)