Accounting Equation Quiz 2

 

 

/30

Accounting Equation Quiz 2

Multiple Choice questions 

30 questions in 20 minutes

Pass Score 70%

1 / 30

What happens to the accounting equation if a business incurs a $1,000 expense?

2 / 30

Which of the following best describes a liability?

3 / 30

What is the effect on the accounting equation when inventory is purchased on credit ?

4 / 30

Which of the following best describes equity ?

5 / 30

If a company's assets total $500,000 and liabilities total $300,000, what is the amount of equity ?

6 / 30

What happens to the accounting equation if a company buys equipment for $50,000 and pays with a bank loan?

7 / 30

If a company purchases inventory worth $10,000 on credit, what is the effect on the accounting equation ?

8 / 30

If a company pays off a $2,000 loan, how is the accounting equation affected ?

9 / 30

Which component of the accounting equation is affected when dividends are declared ?

10 / 30

If a company pays a $3,000 dividend to shareholders, what is the impact on the accounting equation ?

11 / 30

What is the effect on the accounting equation when a company writes off a $700 bad debt?

12 / 30

When a company receives $15,000 for services to be performed in the future, how is the accounting equation affected ?

13 / 30

What is the effect on the accounting equation when a company pays a utility bill of $900?

14 / 30

What effect does a cash sale have on the accounting equation?

15 / 30

If a company collects $5,500 in accounts receivable, what is the effect on the accounting equation ?

16 / 30

How does paying salaries of $20,000 affect the accounting equation ?

17 / 30

If a company sells an asset for $1,200 that originally cost $800, how is the accounting equation affected ?

18 / 30

What happens to the accounting equation when a company earns $1000 in interest income?

19 / 30

What happens to the accounting equation when a company receives a loan of $100,000?

20 / 30

What happens to the accounting equation when a company purchases equipment for cash?

21 / 30

If a business owner withdraws $10,000 for personal use, what is the impact on the accounting equation ?

22 / 30

Which of the following is the correct accounting equation?

23 / 30

If a business acquires $5,000 in equipment on credit, what happens to the accounting equation?

24 / 30

Which of the following transactions will decrease equity?

25 / 30

What is the effect on the accounting equation when a company borrows money from a bank ?

26 / 30

If equity increases and liabilities remain constant, what must happen to assets ?

27 / 30

Which of the following is the basic accounting equation?

28 / 30

How does issuing common stock for $10,000 impact the accounting equation ?

29 / 30

How does a purchase of a new building for $50,000, paid with cash, affect the accounting equation?

30 / 30

If a business buys office supplies for $500 in cash, what happens to the accounting equation ?

Your score is

0%

Leave a comment