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Accounting equation: Quiz


Question 1: For example: A student buys a ________ for $945.
Personal computerCentral processing unitComputerLinux

Question 2: Now his ________ are worth $945, liabilities are $500, and equity $445.
Cash flow statementBalance sheetAssetValuation (finance)

Question 3: An elaborate form of this equation is presented in a ________ which lists all assets, liabilities, and equity, as well as totals to ensure that it balances.
Balance sheetEquity (finance)Liability (financial accounting)Accountancy

Question 4: Every ________ transaction affects at least one element of the equation, but always balances.
Sarbanes–Oxley ActProto-ElamiteBalance sheetAccountancy

Question 5: They argue that even though ________ formally introduced it to Europe, the credit should still go to Eastern merchants who had been using it years before.
The Last Supper (Leonardo da Vinci)Luca PacioliLeonardo da VinciLeonardo da Vinci's personal life

Question 6: Luca Pacioli is notable for including the first published description of the method of keeping accounts that Venetian merchants used during the ________, known as the double-entry accounting system.
Italian WarsItalyItalian Renaissance arts and cultureItalian Renaissance

Question 7: It shows how ________ were financed: either by borrowing money from someone (liability) or by paying your own money (ownership equity).
Balance sheetValuation (finance)AssetCash flow statement

Question 8: The 'basic accounting equation' is the foundation for the ________.
Double-entry bookkeeping systemBalance sheetAssetAccountancy

Question 9: Now it shows owner's interest is equal to property (assets) minus ________ (liabilities).
Bond (finance)Credit (finance)DebtConsumer debt


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