Welcome to Introduction to the Accounting Equation Quiz. Here are 20 questions you can practice with multiple choice answers. Answer all the questions and see your scores.
1.
If a business purchases equipment with cash, how does it affect the Accounting Equation?
2.
What is the basic formula of the Accounting Equation?
3.
What happens to the Accounting Equation when a business pays off a portion of its debt?
4.
When expenses are incurred for operating the business, how does it affect the Accounting Equation?
5.
If a business purchases inventory on credit, how does it affect the Accounting Equation?
6.
If a business collects cash from a customer for services provided, how does it affect the Accounting Equation?
7.
When revenue is earned by providing services to a customer, how does it affect the Accounting Equation?
8.
If a business takes out a loan from the bank, how does it affect the Accounting Equation?
9.
If a business owner invests additional capital into the business, how does it affect the Accounting Equation?
10.
What happens to the Accounting Equation when a business pays dividends to its shareholders?
