Welcome to Adjusting Entries and Their Effect on the Accounting Equation. Here are the questions you can practice with multiple choice answers. Answer all the questions and see your scores.
1.
How does paying rent for the upcoming month affect the Accounting Equation?
2.
How does purchasing inventory on credit affect the Accounting Equation?
3.
If a business purchases equipment with cash, how does it impact the Accounting Equation?
4.
When a business receives payment from a customer for services provided, what happens to the Accounting Equation?
5.
If a business pays off a portion of its debts, how does it affect the Accounting Equation?
6.
When a business invests additional capital from its owners, what is the impact on the Accounting Equation?
7.
How does declaring and paying dividends affect the Accounting Equation?
8.
Which of the following represents the Accounting Equation?
9.
What happens to the Accounting Equation when a business takes out a loan?
10.
What is the effect of recognizing revenue earned but not yet received on the Accounting Equation?
