Accounting Equations

Commerce ⇒ Accountancy

Accounting Equations starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Accounting Equations. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 11

A business started with cash ₹50,000. It purchased goods for cash ₹20,000. What is the effect on assets?

Explain how the accounting equation is affected when goods are sold on credit.

Explain the effect of depreciation on the accounting equation.

Explain the effect of paying salary on the accounting equation.

Explain the effect of the purchase of goods for cash on the accounting equation.

Explain the impact of earning revenue on the accounting equation.

Explain why the accounting equation must always balance.

If a business earns profit of ₹15,000, what is the effect on capital?

Which of the following is an example of a transaction that affects only assets? (1) Purchase of goods for cash (2) Payment to creditors (3) Owner withdraws cash (4) Payment of rent

Which of the following is correct regarding the accounting equation? (1) Assets = Liabilities - Capital (2) Assets = Liabilities + Capital (3) Assets + Liabilities = Capital (4) Assets = Capital - Liabilities

Which of the following is NOT a component of the accounting equation? (1) Assets (2) Liabilities (3) Revenue (4) Capital

Which of the following is NOT affected by the accounting equation? (1) Assets (2) Liabilities (3) Capital (4) None of these

Fill in the blank: If assets are ₹1,00,000 and liabilities are ₹70,000, capital is ________.

Fill in the blank: If assets are ₹80,000 and capital is ₹50,000, liabilities are ________.

Fill in the blank: If assets increase by ₹10,000 and liabilities decrease by ₹4,000, capital will ________ by ₹14,000.

Fill in the blank: If liabilities increase by ₹5,000 and assets increase by ₹5,000, the capital will ________.

True or False: If assets decrease and liabilities increase by the same amount, capital will decrease.

True or False: The accounting equation always remains balanced after every transaction.

True or False: The accounting equation can be expressed as Capital = Assets - Liabilities.

True or False: The accounting equation is also called the statement of financial position equation.