Accounting Equation Essentials

Froggy Jumps

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Balance key concepts fast.

Fatma

United Arab Emirates

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Accounting Equation Essentials


Froggy Jumps Accounting Equation EssentialsVersion en ligne Balance key concepts fast. par Fatma 1 When the owner invests money in the business, which side increases? a Only Assets increase b Liabilities increase c Assets and Owner's Equity increase 2 What happens to the accounting equation if the business buys equipment with cash? a Liabilities increase b Assets remain the same (cash decreases, equipment increases) c Owner's Equity decreases 3 Why must Assets = Liabilities + Owner's Equity stay balanced? a Only assets matter b Cash flow is enough to balance c Every transaction affects both sides to keep balance 4 If the company borrows money from the bank, which accounts will change? a Assets decrease and Equity increases b Cash increases and Liabilities increase c Cash decreases and Liabilities decrease 5 Why is the accounting equation important for tracking activities? a It tracks only cash flow b It shows financial position and ensures accuracy c It predicts profits 6 If the owner contributes more capital from personal funds, what happens? a Only Assets increase b Liabilities increase c Assets and Owner's Equity increase 7 When revenue is earned, which accounts change? a Liabilities decrease b Assets increase and Owner's Equity increases c Only Expenses increase 8 What is the core idea of double-entry bookkeeping? a Every transaction has equal debits and credits b Only assets are recorded c Income and expenses are the same