Practice Accounting Equation (4.5.2) - Mechanics and Terminology of Accounting Systems

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9 questions

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6 sample questions

Question 1.
What is the accounting equation?
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Think about what a business owns and owes.
Question 2.
If a business has ₹10,000 in assets and ₹6,000 in liabilities, how much is the capital?
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Use the equation to find the answer.
3Question 3.
What is the accounting equation?
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It's the foundational formula for double-entry accounting.
4Question 4.
True or False: If liabilities increase and assets remain unchanged, capital decreases.
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Think about how the equation must always balance.
Question 5.
A company has total assets of ₹200,000 and total liabilities of ₹120,000. Calculate the capital and explain its significance.
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Use the accounting equation to find the capital.
Question 6.
If capital increases by ₹30,000 and liabilities decrease by ₹10,000, how will this impact total assets?
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Consider how each change impacts the accounting equation.

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