Welcome to Transactions Analysis and Impact on the Accounting Equation. Here are 20 questions you can practice with multiple choice answers. Answer all the questions and see your scores.
1.
If a company purchases equipment for $10,000 cash, how does this transaction affect the accounting equation?
2.
What is the impact of recording revenue from a sale on the accounting equation?
3.
Which of the following is NOT included in the accounting equation?
4.
If a company earns interest revenue on investments, how does this affect the accounting equation?
5.
What happens to the accounting equation when a company pays dividends to its shareholders?
6.
What happens to the accounting equation when a company issues additional shares of common stock?
7.
If a company purchases inventory on credit, how does this transaction affect the accounting equation?
8.
How does recording depreciation expense affect the accounting equation?
9.
When a business takes out a loan, how does this affect the accounting equation?
10.
How does paying off a loan affect the accounting equation?
