Basic Accounting Test 1

According to which concept Owner and Business are treated distinctly?

What is owner's investment called?

Merry has 22 employees ,but she can not record it in books of accounts due to:

You Borrowed money from Bank. What is Bank to you in accounting terms?

Able Ltd. purchased goods from Unable Ltd. and agreed to pay after 10 days. What will be the journal entry?

If in a business,Assets are of $40000 and Capital $15000,what is the amount of Liabilities?

All incomes and expenses have effect on:

If John purchases Machinery amounting $3000 on credit,what will be the effect on Equation?


This is the test created to self judge your clarity of concepts regarding Accounting Concepts, Equations and Journal Entries.Useful to brush up basic concepts of Accounting. After attempting the test if you have any problems , I will feel pleased to answer. Here's Naina Tak's $1 Business Accounting Course Also, check out the best finance training for non-finance executives (C-cadre and business owners!) from Dr. Anil Lamba as well. Also, check out the Bloomberg Assessment Test Prep (BAT) from Shivgan Joshi as well.


Adrian Espiritu

Question Here: Q&A#02

If john purchase machinery 3000 what will be the effect on equation?

ans: both assets and liabilities increase.

will this should be?

Asset: No effect ( since Cash=asset, you will loose cash but still have the equipment cost same as the cash )

Liabilities: Increase ( because you See more

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