Which of the following transactions increases assets and decreases liabilities?

Buying supplies for cash

Collecting cash from debtors

Paying creditor with cash

Cash received from bank loan

Correct! Wrong!

Which transaction increases both assets and liabilities?

Owner withdrawal

Paying electricity bill

Paying wages in cash

Buying inventory on credit

Correct! Wrong!

Which element is missing? Assets = Liabilities + ____?

Owner’s Equity

Expenses

Drawings

Revenue

Correct! Wrong!

The effect of drawings on the accounting equation is?

Decrease assets, decrease equity

Increase equity, decrease liabilities

Increase assets, decrease liabilities

Increase assets, increase equity

Correct! Wrong!

If liabilities are $10,000 and equity is $25,000, assets are?

$25,000

$15,000

$35,000

$10,000

Correct! Wrong!

Which of the following leaves total assets unchanged?

Owner’s investment

Cash received from a loan

Buying equipment with cash

Cash sales

Correct! Wrong!

Which transaction affects only the equity side of the equation?

Borrowing from bank

Purchase of inventory for cash

Owner withdraws cash

Paying supplier

Correct! Wrong!

If total assets are $100,000 and liabilities are $40,000, owner’s equity equals?

$100,000

$40,000

$60,000

$140,000

Correct! Wrong!

Which of the following transactions decreases assets and liabilities?

Goods purchased on credit

Revenue earned

Owner’s investment

Loan repayment in cash

Correct! Wrong!

Which transaction increases one asset and decreases another asset?

Receiving a loan

Owner investment

Purchasing equipment for cash

Paying salaries

Correct! Wrong!

Accounting Equation Problems MCQs 2

Which of the following transactions increases assets and decreases liabilities?

Which transaction increases both assets and liabilities?

Which element is missing? Assets = Liabilities + ____?

The effect of drawings on the accounting equation is?

If liabilities are $10,000 and equity is $25,000, assets are?

Which of the following leaves total assets unchanged?

Which transaction affects only the equity side of the equation?

If total assets are $100,000 and liabilities are $40,000, owner’s equity equals?

Which of the following transactions decreases assets and liabilities?

Which transaction increases one asset and decreases another asset?

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