Accounting Equation MCQ & Quiz

  1. The Accounting equation is Asset = Liabilities +................
  2. If the assets of a business are Rs . 100,000 and equity is Rs. 20,000, the value of liability will be
  3. Accounting equation is the base of
  4. Who is the Father of Double Entry System?
  5. Net Income = Income - .............
  6. On January 1st 2009 an entity"s balance sheet showed total asset of Rs 850 and total liabilities of Rs 250. Owners equity at January 1st was?
  7. The Liabilities of a business are Rs 30,000; the capital of proprietor is Rs 70,000. The total asset are ?
  8. Accounting principles are generally based on
  9. Accounting principles can be classified into
  10. According to the money measurement concept, the following would be recorded in the books of account of the business
  11. According to this concept, It is assumed that business will exit for indefinite time period
  12. Assets - liability = ?
  13. If assets are Rs 8000 and capital is Rs 6000, liabilities will be
  14. The accounting equation represents
Accounting Equation MCQ

Accounting Equation  MCQ Quiz & Online Test: Below is few Accounting Equation MCQ test that checks your basic knowledge of Accounting Equation abilities.This  Accounting Equation MCQ Quiz & Online Test  contains questions 40 of multiple choice with 4 options. You have to select the right answer to a question.

  • Capital
  • current Asset
  • Total Expense
  • Equtiy
  • Single Entry System
  • Dual asept Concept
  • Double Entry System
  • Costing Measurement System
View Answer
  • Luca Pascoli
  • Pineer Peggler
  • Jeromee Lee
  • Eugeue F. Fama
View Answer
  • Profit
  • Losses
  • Expenses
  • Revenue
View Answer
  • Practicability
  • Subjectivity
  • Conveniences in recodings
  • All of the above
View Answer
  • Two Kinds
  • Three Kinds
  • Four Kinds
  • Five Kinds
View Answer
  • Health of director of company
  • Quality of company good"s
  • Value of Plant Machinery
  • All of the above
View Answer
  • Realization concept
  • Going concern concept
  • Business Entity Concept
  • None of the above
View Answer
  • Profit
  • Working Capital
  • Capital
  • Long term Liability
View Answer
  • Resource are allocated at Cost Price
  • Owner"s Gives money for business
  • Resource in the business are equal to source of business
  • Resource in the business are not equal to the source of business
View Answer
  • Cash and Good
  • Cash Good and Creditor
  • Cash and Creditor
  • Cash Creditor and Owner's Equity
View Answer
  • Cost and Income for managers
  • Company"s tax and liabilities for a particular year
  • Financial conditions of an Institute
  • All of above
View Answer
  • Current Asset
  • Fixed Asset
  • Intangible Asset
  • Investment
View Answer
  • Owner"s equity=Contributed capital+Retained Earnings
  • Retained Earnings= Net income-Dividends
  • Net Income=income - Expense
  • All of the above
View Answer
  • Trial Balance
  • Cost Sheet
  • Final Account
  • Balance Sheet
View Answer
  • Trading Accounting
  • Trial Balance
  • Profit & loss statement
  • Balance Sheet
View Answer
  • Daily
  • Weekly
  • Monthly
  • Annually
View Answer
  • Share
  • Bond
  • Equity
  • Reserve
  • Sale Budget
  • Production Budget
  • Material Budget
  • All of the above
View Answer
  • Added to liability
  • Subtract from current asset
  • Subtract from Capital
  • Subtract from liability
View Answer
  • Every Year
  • Every Half Year
  • Quarterly
  • A the end of every account period
View Answer
  • Nothing
  • Discounting
  • Acceptance
  • None of the above
View Answer
  • Periodicity concept
  • Business entity Concept
  • Accrual concept
  • None of the above
View Answer
  • In profit&loss accounting
  • In profit & loss appropriation account
  • On the asset side of the balance sheet
  • In trading account
View Answer
  • The Going concern concept
  • The Separate Entity
  • The Prudence concept
  • Matching concept
View Answer
  • Income Statement
  • Balance sheet
  • Cash flow statement
  • Statement of Stockholder"s Equity
View Answer
  • Asset
  • Liability
  • Revenue
  • Stockholder"s Equity
View Answer
  • Asset
  • Liability
  • Revenue
  • Stockholder"s Equity
View Answer
  • General Journal
  • General Ledger
  • T-Account
  • Ledger Account
View Answer
  • Fixed cost
  • Variable cost
  • Semi Variable cost
  • None of these above
View Answer
  • Added to salary while preparing P&l a/c
  • Shown in liability side of balance sheet under current liability
  • A&b
  • Above None of these
View Answer
  • Asset side of B&S
  • Liability side of B&S
  • P&L account
  • None of the above
View Answer
  • Accounting Concept
  • Accounting conventions
  • Accounting standard
  • Both 1 & 2
View Answer
  • Cash
  • capital
  • Both 1 & 2
  • none of the mentioned
View Answer
  • Each business transaction will have two debits
  • The accounting equation remains in balance.
  • Every transaction affects at least two accounts.
  • The sum of all debits is always equal to the sum of all credits in each journal entry.
View Answer
  • Assets = Revenues + Expenses - Liabilities
  • Assets + Dividends + Expenses = Liabilities + Common stock + Retained Earnings + Revenues
  • Assets = Liabilities + Common stock + Retained Earnings + Dividends- Revenue - Expenses
  • None of the above
View Answer