{"id":717763,"date":"2024-05-09T18:11:55","date_gmt":"2024-05-09T12:41:55","guid":{"rendered":"https:\/\/infinitylearn.com\/surge\/?p=717763"},"modified":"2024-05-09T18:11:55","modified_gmt":"2024-05-09T12:41:55","slug":"cbse-class-11-accounting-equation-mcqs","status":"publish","type":"post","link":"https:\/\/infinitylearn.com\/surge\/mcqs\/class-11-accountancy\/accounting-equation\/","title":{"rendered":"CBSE Class 11 Accounting equation MCQs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_37 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' style='display:block'><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/infinitylearn.com\/surge\/mcqs\/class-11-accountancy\/accounting-equation\/#Accounting_Equation_Class_11_MCQ_With_Answers_Pdf\" title=\"Accounting Equation Class 11 MCQ With Answers Pdf\">Accounting Equation Class 11 MCQ With Answers Pdf<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/infinitylearn.com\/surge\/mcqs\/class-11-accountancy\/accounting-equation\/#Accounting_Equation_Class_11_MCQ_With_Answers\" title=\"Accounting Equation Class 11 MCQ With Answers\">Accounting Equation Class 11 MCQ With Answers<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>We provide a comprehensive set of multiple-choice questions (MCQs) with answers to help you strengthen your understanding of the accounting equation. Whether you&#8217;re reviewing for exams or seeking additional practice, these MCQs cover essential concepts in accounting equation class 11. Download the Accounting equation class 11 mcq with answers PDF from Infinity Learn for convenient access to these valuable resources. Let&#8217;s dive into the world of accounting equations and enhance your knowledge with ease.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Accounting_Equation_Class_11_MCQ_With_Answers_Pdf\"><\/span>Accounting Equation Class 11 MCQ With Answers Pdf<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\t\t<div class=\"download-pdf-container\">\n\t\t\t<span class=\"title\">Do you need help with your Homework? 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underline;\">terms and conditions<\/a> and <a target=\"_blank\" href=\"https:\/\/infinitylearn.com\/privacy\" style=\"text-decoration: underline;\">privacy policy<\/a>.<\/p>\n<p><input type=\"button\" style=\"cursor:pointer;width:auto;\" class=\"il_otp_submit\" value=\"Get OTP\" onclick=\"sendCF7OTP(this, otp_phone.value, user_name.value)\"><\/p>\n<div class=\"form-submit-btn-div\" style=\"display:none;\">\n<input type=\"submit\" value=\"Download PDF\" class=\"wpcf7-form-control has-spinner wpcf7-submit download-pdf-submit\" \/>\n<\/div>\n<\/div>\n<div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div><\/form><\/div>\n\t\t\t\t\t<span class=\"pdf-link hidden\" data-pdf=\"https:\/\/infinitylearn.com\/surge\/wp-content\/uploads\/securepdfs\/2024\/05\/Accounting-equation-1.pdf\"><\/span>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div class=\"bg-overlay\"><\/div>\n\t\t<\/div>\n\t\t<a href=\"\/surge\/?pdfemb-serveurl=https%3A%2F%2Finfinitylearn.com%2Fsurge%2Fwp-content%2Fuploads%2Fsecurepdfs%2F2024%2F05%2FAccounting-equation-1.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\" data-mobile-width=\"0\"  data-scrollbar=\"both\" data-download=\"off\" data-tracking=\"on\" data-newwindow=\"on\" data-pagetextbox=\"off\" data-scrolltotop=\"on\" data-startzoom=\"100\" data-startfpzoom=\"100\" data-download-nonce=\"a63c16a8ed\" data-disablerightclick=\"on\" data-toolbar=\"top\" data-toolbar-fixed=\"on\">Accounting equation Class 11<br\/><\/a>\n<h3><span class=\"ez-toc-section\" id=\"Accounting_Equation_Class_11_MCQ_With_Answers\"><\/span>Accounting Equation Class 11 MCQ With Answers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Q. What is the fundamental equation in accounting? <\/strong><\/p>\n<p>A) Assets = Liabilities &#8211; Equity<\/p>\n<p>B) Assets = Liabilities + Equity<\/p>\n<p>C) Assets &#8211; Liabilities = Equity<\/p>\n<p>D) Liabilities = Assets + Equity<\/p>\n<p><strong>Answer:<\/strong> B) Assets = Liabilities + Equity<\/p>\n<p><strong>Q. In the accounting equation, assets are equal to: <\/strong><\/p>\n<p>A) Revenues &#8211; Expenses<\/p>\n<p>B) Liabilities &#8211; Equity<\/p>\n<p>C) Liabilities + Equity<\/p>\n<p>D) None of the above<\/p>\n<p><strong>Answer:<\/strong> C) Liabilities + Equity<\/p>\n<p><strong>Q. If a company&#8217;s assets are $50,000 and its liabilities are $20,000, what is its equity? <\/strong><\/p>\n<p>A) $30,000<\/p>\n<p>B) $70,000<\/p>\n<p>C) $20,000<\/p>\n<p>D) $50,000<\/p>\n<p><strong>Answer:<\/strong> A) $30,000<\/p>\n<p><strong>Q. What happens to the accounting equation if a company borrows $10,000 from a bank? <\/strong><\/p>\n<p>A) Assets increase by $10,000<\/p>\n<p>B) Assets decrease by $10,000<\/p>\n<p>C) Liabilities increase by $10,000<\/p>\n<p>D) Equity increases by $10,000<\/p>\n<p><strong>Answer:<\/strong> C) Liabilities increase by $10,000<\/p>\n<p><strong>Q. Which of the following transactions would increase both assets and liabilities? <\/strong><\/p>\n<p>A) Purchasing inventory on credit<\/p>\n<p>B) Selling inventory for cash<\/p>\n<p>C) Paying off a bank loan<\/p>\n<p>D) Receiving cash from customers<\/p>\n<p><strong>Answer:<\/strong> A) Purchasing inventory on credit<\/p>\n<p><strong>Q. If a company&#8217;s equity is $25,000 and its liabilities are $15,000, what are its assets? <\/strong><\/p>\n<p>A) $40,000<\/p>\n<p>B) $10,000<\/p>\n<p>C) $25,000<\/p>\n<p>D) $15,000<\/p>\n<p><strong>Answer:<\/strong> A) $40,000<\/p>\n<p style=\"text-align: center;\"><strong>Also Read: <a href=\"https:\/\/infinitylearn.com\/surge\/mcqs\/class-11-chemistry\/mole-concept\/\">Mole Concept Class 11 MCQs With Answer<\/a><\/strong><\/p>\n<p><strong>Q. Which of the following transactions would decrease assets? <\/strong><\/p>\n<p>A) Borrowing money from a bank<\/p>\n<p>B) Selling equipment for cash<\/p>\n<p>C) Purchasing supplies on credit<\/p>\n<p>D) Receiving cash from customers<\/p>\n<p><strong>Answer:<\/strong> B) Selling equipment for cash<\/p>\n<p><strong>Q. If a company&#8217;s assets are $100,000 and its liabilities are $60,000, what is its equity? <\/strong><\/p>\n<p>A) $60,000<\/p>\n<p>B) $40,000<\/p>\n<p>C) $100,000<\/p>\n<p>D) $160,000<\/p>\n<p><strong>Answer:<\/strong> B) $40,000<\/p>\n<p><strong>Q. What does the accounting equation represent? <\/strong><\/p>\n<p>A) The financial position of a company<\/p>\n<p>B) The income statement of a company<\/p>\n<p>C) The cash flow statement of a company<\/p>\n<p>D) The budget of a company<\/p>\n<p><strong>Answer:<\/strong> A) The financial position of a company<\/p>\n<p><strong>Q. If a company pays off a $5,000 loan, how does it affect the accounting equation? <\/strong><\/p>\n<p>A) Assets increase by $5,000<\/p>\n<p>B) Assets decrease by $5,000<\/p>\n<p>C) Liabilities increase by $5,000<\/p>\n<p>D) Equity decreases by $5,000<\/p>\n<p><strong>Answer:<\/strong> B) Assets decrease by $5,000<\/p>\n<p><strong>Q. Which of the following transactions would decrease both assets and liabilities? <\/strong><\/p>\n<p>A) Paying rent in cash<\/p>\n<p>B) Purchasing equipment on credit<\/p>\n<p>C) Receiving payment from a customer<\/p>\n<p>D) Borrowing money from a bank<\/p>\n<p><strong>Answer:<\/strong> A) Paying rent in cash<\/p>\n<p><strong>Q. If a company&#8217;s assets are $80,000 and its equity is $50,000, what are its liabilities? <\/strong><\/p>\n<p>A) $30,000<\/p>\n<p>B) $130,000<\/p>\n<p>C) $80,000<\/p>\n<p>D) $50,000<\/p>\n<p><strong>Answer:<\/strong> A) $30,000<\/p>\n<p><strong>Q. What is the accounting equation also known as? <\/strong><\/p>\n<p>A) The balance sheet equation<\/p>\n<p>B) The income statement equation<\/p>\n<p>C) The cash flow equation<\/p>\n<p>D) The profit equation<\/p>\n<p><strong>Answer:<\/strong> A) The balance sheet equation<\/p>\n<p><strong>Q. Which of the following transactions would increase assets and equity? <\/strong><\/p>\n<p>A) Paying off a loan<\/p>\n<p>B) Receiving payment from a customer<\/p>\n<p>C) Purchasing equipment on credit<\/p>\n<p>D) Borrowing money from a bank<\/p>\n<p><strong>Answer:<\/strong> B) Receiving payment from a customer<\/p>\n<p><strong>Q. If a company&#8217;s assets are $120,000 and its liabilities are $90,000, what is its equity? <\/strong><\/p>\n<p>A) $210,000<\/p>\n<p>B) $30,000<\/p>\n<p>C) $120,000<\/p>\n<p>D) $90,000<\/p>\n<p><strong>Answer:<\/strong> B) $30,000<\/p>\n<p><strong>Q. What does equity represent in the accounting equation? <\/strong><\/p>\n<p>A) The total assets of a company<\/p>\n<p>B) The total liabilities of a company<\/p>\n<p>C) The owner&#8217;s claim on assets<\/p>\n<p>D) The owner&#8217;s claim on liabilities<\/p>\n<p>Answer: C) The owner&#8217;s claim on assets<\/p>\n<p><strong>Q. Which of the following transactions would decrease equity? <\/strong><\/p>\n<p>A) Receiving payment from a customer<\/p>\n<p>B) Paying dividends to shareholders<\/p>\n<p>C) Borrowing money from a bank<\/p>\n<p>D) Purchasing inventory on credit<\/p>\n<p><strong>Answer:<\/strong> B) Paying dividends to shareholders<\/p>\n<p><strong>Q. If a company&#8217;s liabilities are $40,000 and its equity is $60,000, what are its assets? <\/strong><\/p>\n<p>A) $100,000<\/p>\n<p>B) $20,000<\/p>\n<p>C) $40,000<\/p>\n<p>D) $60,000<\/p>\n<p><strong>Answer:<\/strong> A) $100,000<\/p>\n<p><strong>Q. What is the effect on the accounting equation if a company purchases equipment for cash? <\/strong><\/p>\n<p>A) Assets increase, liabilities decrease<\/p>\n<p>B) Assets decrease, liabilities increase<\/p>\n<p>C) Assets increase, equity decreases<\/p>\n<p>D) Assets decrease, equity decreases<\/p>\n<p><strong>Answer:<\/strong> A) Assets increase, liabilities decrease<\/p>\n<p><strong>Q. Which of the following statements is true regarding the accounting equation? <\/strong><\/p>\n<p>A) It must always balance<\/p>\n<p>B) It only applies to large corporations<\/p>\n<p>C) It is not used in financial reporting<\/p>\n<p>D) It is not affected by business transactions<\/p>\n<p><strong>Answer:<\/strong> A) It must always balance<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We provide a comprehensive set of multiple-choice questions (MCQs) with answers to help you strengthen your understanding of the accounting [&hellip;]<\/p>\n","protected":false},"author":52,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_focuskw":"Accounting Equation","_yoast_wpseo_title":"Accounting Equation Class 11 MCQs With Answer PDF | Infinity Learn","_yoast_wpseo_metadesc":"Get Accounting Equation Class 11 MCQs With Answer PDF for comprehensive practice. 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