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 takes out a loan from the bank, how does it affect the Accounting Equation?
2.
What happens to the Accounting Equation when a business pays dividends to its shareholders?
3.
When revenue is earned by providing services to a customer, how does it affect the Accounting Equation?
4.
If a business owner invests additional capital into the business, how does it affect the Accounting Equation?
5.
What is the basic formula of the Accounting Equation?
6.
What happens to the Accounting Equation when a business pays off a portion of its debt?
7.
If a business collects cash from a customer for services provided, how does it affect the Accounting Equation?
8.
If a business purchases equipment with cash, how does it affect the Accounting Equation?
9.
If a business purchases inventory on credit, how does it affect the Accounting Equation?
10.
When expenses are incurred for operating the business, how does it affect the Accounting Equation?
