Accounting Equation

Accounts receivable is a/an ______

• liability

• asset

• capital

The basic accounting equation is ____

• assets + liabilities = capital

• assets = liabilities - capital

• assets = liabilities + capital

• assets - liabilities = capital

Any "payable" account is _____

• a liability

• an asset

• a capital

• a revenue

Find the missing amount:

Assets = 500,000

Liabilities = ?

Capital = 300,000

How much is your liability if your business' assets is P 250,000 and owner's equity is P 200,00?

The term that refers to the equity of the owners.

• asset

• revenue

• expense

• capital

Prepaid expenses are part of _____

• assets

• expenses

• liabilities

• capital

How much is your total assets if liabilities amount to P 25,000 and equity amounts to P 75,000?

Find the missing amount:

Equity = ?

Assets = P 35,000

Liabilities = P 12,000

What business transactions result to a decrease in capital?

• a. withdrawal by the owner

• b. purchase of an asset

• c. payment of expenses

• d. a and c

• e. b and c