Accounting Equation Problems MCQs 2

Which of the following transactions decreases assets and liabilities?

Owner’s investment

Loan repayment in cash

Goods purchased on credit

Revenue earned

Correct! Wrong!

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

$140,000

$40,000

$100,000

$60,000

Correct! Wrong!

Which transaction increases both assets and liabilities?

Paying wages in cash

Owner withdrawal

Buying inventory on credit

Paying electricity bill

Correct! Wrong!

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

$25,000

$10,000

$35,000

$15,000

Correct! Wrong!

Which element is missing? Assets = Liabilities + ____?

Expenses

Drawings

Owner’s Equity

Revenue

Correct! Wrong!

Which transaction affects only the equity side of the equation?

Paying supplier

Borrowing from bank

Purchase of inventory for cash

Owner withdraws cash

Correct! Wrong!

Which transaction increases one asset and decreases another asset?

Receiving a loan

Paying salaries

Owner investment

Purchasing equipment for cash

Correct! Wrong!

Which of the following transactions increases assets and decreases liabilities?

Paying creditor with cash

Cash received from bank loan

Buying supplies for cash

Collecting cash from debtors

Correct! Wrong!

The effect of drawings on the accounting equation is?

Increase assets, decrease liabilities

Decrease assets, decrease equity

Increase equity, decrease liabilities

Increase assets, increase equity

Correct! Wrong!

Which of the following leaves total assets unchanged?

Owner’s investment

Cash sales

Buying equipment with cash

Cash received from a loan

Correct! Wrong!

Accounting Equation Problems MCQs 2

Which of the following transactions decreases assets and liabilities?

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

Which transaction increases both assets and liabilities?

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

Which element is missing? Assets = Liabilities + ____?

Which transaction affects only the equity side of the equation?

Which transaction increases one asset and decreases another asset?

Which of the following transactions increases assets and decreases liabilities?

The effect of drawings on the accounting equation is?

Which of the following leaves total assets unchanged?

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