4.5.2 - Accounting Equation
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Practice Questions
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What is the accounting equation?
💡 Hint: Think about what a business owns and owes.
If a business has ₹10,000 in assets and ₹6,000 in liabilities, how much is the capital?
💡 Hint: Use the equation to find the answer.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the accounting equation?
💡 Hint: It's the foundational formula for double-entry accounting.
True or False: If liabilities increase and assets remain unchanged, capital decreases.
💡 Hint: Think about how the equation must always balance.
1 more question available
Challenge Problems
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A company has total assets of ₹200,000 and total liabilities of ₹120,000. Calculate the capital and explain its significance.
💡 Hint: Use the accounting equation to find the capital.
If capital increases by ₹30,000 and liabilities decrease by ₹10,000, how will this impact total assets?
💡 Hint: Consider how each change impacts the accounting equation.
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