Accounting Equation Quiz

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Which of the following best describes the accounting equation?

If a company has $10,000 in assets and $4,000 in liabilities, what is its equity?

The accounting equation states that What equals liabilities plus equity? equals liabilities plus equity.

Which of the following transactions would increase both assets and liabilities?

True or False: If assets increase and liabilities remain the same, equity must increase.

A company has assets of $25,000 and equity of $15,000. What are the company's liabilities?

Select all that are considered assets:

Given the following: Assets = $12,000, Liabilities = $5,000. Calculate Equity.

Scenario: The company purchases a vehicle for $8,000 by paying $2,000 cash and taking out a $6,000 loan. How does this transaction affect the accounting equation?

On a scale of 1 to 5, how confident are you in your understanding of the accounting equation?