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 owner withdraws cash for personal use, how does it affect the Accounting Equation?
2.
If a business purchases equipment by taking out a loan, how does it affect the Accounting Equation?
3.
If a business purchases inventory on credit, how does it affect the Accounting Equation?
4.
What happens to the Accounting Equation when a business pays dividends to its shareholders?
5.
When expenses are incurred for operating the business, how does it affect the Accounting Equation?
6.
What happens to the Accounting Equation when a business pays off a portion of its debt?
7.
If a business takes out a loan from the bank, how does it affect the Accounting Equation?
8.
If a business owner invests additional capital into the business, how does it affect the Accounting Equation?
9.
When a business earns revenue by selling goods to a customer on credit, how does it affect the Accounting Equation?
10.
When a business records depreciation expense for its equipment, how does it affect the Accounting Equation?
11.
When revenue is earned by providing services to a customer, how does it affect the Accounting Equation?
12.
If a business collects cash from a customer for services provided, how does it affect the Accounting Equation?
13.
What happens to the Accounting Equation when a business collects cash in advance from a customer for services to be provided later?
14.
If a business purchases inventory on credit, how does it affect the Accounting Equation?
15.
What happens to the Accounting Equation when a business pays rent for its office space?
16.
When a business pays off a portion of its debt, how does it affect the Accounting Equation?
17.
What is the basic formula of the Accounting Equation?
18.
What happens to the Accounting Equation when a business receives cash from a customer for services rendered?
19.
If a business owner invests additional capital into the business, how does it affect the Accounting Equation?
20.
If a business purchases equipment with cash, how does it affect the Accounting Equation?
