Welcome to Analyzing Financial Position using the Accounting Equation. Here are the questions you can practice with multiple choice answers. Answer all the questions and see your scores.
1.
If a company pays off a loan, what happens to the accounting equation?
2.
What happens to the equity if expenses decrease?
3.
Which of the following represents the basic accounting equation?
4.
If a company pays dividends to its shareholders, how does this affect the accounting equation?
5.
What effect does revenue recognition have on the accounting equation?
6.
If a company issues stock for cash, how does this transaction affect the accounting equation?
7.
If liabilities decrease, what will happen to the accounting equation?
8.
If a company's assets increase, what will happen to the equity?
9.
If a company purchases equipment on credit, what happens to the accounting equation?
10.
What happens to equity if there is a net loss for the period?
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