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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