The accounting equation tells us that the assets of a business are equal to the liabilities plus the owners equity in the business. In any transaction the accounting equation must balance, and it is important to be able to identify whether a transaction affects the assets, liabilities or the equity of a business.
Test your knowledge of double entry bookkeeping and accounting with our online quiz.
Not Ready for the Assets Liabilities Equity Quiz?
If you need a refresher course on this topic update your knowledge using our tutorials on the accounting equation.
Start the Assets Liabilities Equity Quiz
For each question identify which category (assets, liabilities or equity) does not form part of the accounting equation for the transaction shown. Click on an answer to reveal whether its Right! or Wrong.
Try Another Double Entry Bookkeeping Quiz
This accounting quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.
- Quiz 41: Ending Work in Process Quiz
- Quiz 19: Debit and Credit Entries Quiz
- Quiz 2: Accounting Equation Quiz
- Quiz 6: Debit and Credit Quiz
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.