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 12

A business started with cash Rs. 50,000. It purchased goods for Rs. 20,000 on credit. What will be the new accounting equation?

Describe the impact on the accounting equation when goods are sold on credit.

Explain the dual aspect concept in relation to the accounting equation.

Explain the effect of depreciation on the accounting equation.

A business has assets of Rs. 2,50,000, liabilities of Rs. 1,00,000, and earns a profit of Rs. 30,000. What is the new capital?

A business has assets of Rs. 3,00,000 and liabilities of Rs. 1,20,000. If the owner withdraws Rs. 20,000 for personal use, what will be the new capital?

A business has assets of Rs. 4,00,000, liabilities of Rs. 1,50,000, and the owner withdraws Rs. 30,000. What is the capital after withdrawal?

A business has assets of Rs. 5,00,000 and liabilities of Rs. 2,00,000. If the owner introduces additional capital of Rs. 50,000, what will be the new 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) Sale of goods on credit

Which of the following is correct regarding the accounting equation? (1) It is always balanced (2) It changes after every transaction (3) It is the basis of double entry system (4) All of the above

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 Rs. 2,50,000 and capital is Rs. 1,50,000, liabilities are ________.

Fill in the blank: If assets are Rs. 3,00,000 and liabilities are Rs. 1,00,000, capital is ________.

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

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

State whether the following statement is true or false: 'Purchase of machinery for cash will change the total assets.'

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 affected by every business transaction.