Accounting Equation - SS1 Accounting Past Questions and Answers - page 1
1
What is the accounting equation?
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A
Assets = Liabilities + Equity
B
Assets - capital = Equity
C
Liabilities - Assets = capital
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D
Equity - Liabilities = Assets
2
What are examples of assets?
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A
Equipment, vehicles, and buildings
B
Employees, customers, and vendors
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C
Cash, inventory, and property
D
All of the above
3
What are liabilities?
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A
The company's obligations
B
The company's assets
C
The company's profits
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D
The company's losses
4
What is equity?
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A
The company's expenses
B
The total value of the company's assets
C
The company's net income
D
The residual interest in the company after liabilities have been subtracted from assets
5
What does the accounting equation help to ensure?
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A
That a company's employees are satisfied
B
That a company's products are high-quality
C
That a company's financial records are accurate and reliable
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D
That a company's marketing strategies are effective
6
What is the accounting equation and why is it important?
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7
What are examples of assets and liabilities
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