Practice - The Basic Accounting Equation
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is the basic accounting equation?
💡 Hint: Think about the three components of a balance sheet.
Name one example of an asset.
💡 Hint: Consider what a business owns.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the accounting equation express?
💡 Hint: Remember, it includes both liabilities and owner's equity.
Is owner's equity an asset?
💡 Hint: Think about what comprises total assets.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company reports total assets of $200,000 and liabilities of $80,000. Later it receives a loan of $30,000. What is the new owner’s equity?
💡 Hint: Remember to adjust assets and liabilities according to the loan.
If a business has a total equity of $150,000 but had $50,000 in liabilities, what were the total assets?
💡 Hint: Consider how liabilities and equity contribute to total assets.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.