Accounting Equation MCQ

Practice here the most popular Accounting Equation MCQ with Answers.

What is Accounting Equation?

The accounting equation is the foundation of accounting. It is a simple equation that shows the relationship between assets, liabilities, and equity. The equation is:

Assets = Liabilities + Equity

  • Assets are the resources that a company owns. They can be tangible, such as cash, inventory, and equipment, or intangible, such as patents and goodwill.
  • Liabilities are the debts that a company owes. They can be current liabilities, such as accounts payable and accrued expenses, or long-term liabilities, such as bonds payable and notes payable.
  • Equity is the ownership interest in a company. It is the difference between assets and liabilities.

The accounting equation is a fundamental concept in accounting. It is used to track the financial health of a company and to record business transactions. By understanding the accounting equation, you can gain a better understanding of how accounting works.

Accounting Equation MCQ Questions

#1 Mr. “X” borrowed money from bank; this transaction involves which one of the following accounts?

#2 Which of the following account is affected from the drawings of cash in sole-proprietorship business?

#3 Which of the following is not a correct form of the Accounting Equation?

#4 The favorable balance of profit and loss account should be?

#5 Revenue of the business includes?

#6 Accounting equation is the base of

#7 Who is the Father of Double Entry System?

#8 Accounting principles are generally based on

#9 Assets – liability = ?

#10 Purchase good on credit and for cash will effect

#11 Patent Copyright and Trademark are

#12 The Accounting equation shows on a Company ?

#13 which of the following will cause owner”s equity increase ?

#14 Balance sheet are prepaired

#15 The unfavorable balance of Profit & loss Should be

#16 A bills of exchange when drawn requires

#17 The account format that displayed debit, credits, balance, and headings?

#18 Trade payable are recorded in

#19 Tally package is developed by

#20 Which option is selected from Company Info Menu to divide company data into two financial year

#21 Which menu is used to create new ledgers, groups and voucher types in Tally

#22 Which submenu is used for voucher entry in Tally

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Satyam Jaiswal

Hi, I'm Satyam Jaiswal. I'm a web content writer & also UPSSSC/UPPSC Aspirant since 2018.

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