Top 25 MCQ-Accounting Transaction

Financial Accounting · Topic 4 quiz

Transaction Analysis practice quiz

Work through 25 multiple-choice questions, one at a time. Submit each answer for feedback. At the end, review your score and see which concepts to revisit.

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1. Case 1. An owner contributes 5000 cash and the business borrows 2300. What is equity immediately after both transactions?5000730027002300

2. Case 1. The business buys equipment for 1200 cash. What is the change in total assets at purchase?1200-120024000

3. Case 1. The business earns 840 from a service on credit. By how much do total assets increase?0-8408401680

4. Case 1. The customer later pays 310 against the 840 invoice. What receivable remains?8405303101150

5. Case 1. The business repays 310 of loan principal. What happens to liabilities?Increase by 310Decrease by 310Stay unchangedDecrease by 620

6. Case 2. An owner contributes 8100 cash and the business borrows 3600. What is equity immediately after both transactions?81001170045003600

7. Case 2. The business buys equipment for 1750 cash. What is the change in total assets at purchase?1750-175035000

8. Case 2. The business earns 950 from a service on credit. By how much do total assets increase?0-9509501900

9. Case 2. The customer later pays 420 against the 950 invoice. What receivable remains?9504205301370

10. Case 2. The business repays 420 of loan principal. What happens to liabilities?Increase by 420Decrease by 420Stay unchangedDecrease by 840

11. Case 3. An owner contributes 6250 cash and the business borrows 1900. What is equity immediately after both transactions?6250815043501900

12. Case 3. The business buys equipment for 1450 cash. What is the change in total assets at purchase?1450-145029000

13. Case 3. The business earns 720 from a service on credit. By how much do total assets increase?0-7201440720

14. Case 3. The customer later pays 280 against the 720 invoice. What receivable remains?7202804401000

15. Case 3. The business repays 280 of loan principal. What happens to liabilities?Increase by 280Decrease by 280Stay unchangedDecrease by 560

16. Case 4. An owner contributes 9200 cash and the business borrows 2750. What is equity immediately after both transactions?92001195064502750

17. Case 4. The business buys equipment for 2100 cash. What is the change in total assets at purchase?02100-21004200

18. Case 4. The business earns 1180 from a service on credit. By how much do total assets increase?0-118023601180

19. Case 4. The customer later pays 530 against the 1180 invoice. What receivable remains?11805306501710

20. Case 4. The business repays 530 of loan principal. What happens to liabilities?Increase by 530Decrease by 530Stay unchangedDecrease by 1060

21. Case 5. An owner contributes 7500 cash and the business borrows 3200. What is equity immediately after both transactions?10700750043003200

22. Case 5. The business buys equipment for 1650 cash. What is the change in total assets at purchase?01650-16503300

23. Case 5. The business earns 1040 from a service on credit. By how much do total assets increase?0-104020801040

24. Case 5. The customer later pays 370 against the 1040 invoice. What receivable remains?10403706701410

25. Case 5. The business repays 370 of loan principal. What happens to liabilities?Increase by 370Stay unchangedDecrease by 370Decrease by 740

Show the answer key

5000 Only the owner’s contribution increases equity. Borrowing increases cash and liabilities.
0 Equipment rises and cash falls by the same amount.
840 Accounts receivable increases by the amount earned.
530 Subtract the payment from the outstanding receivable.
Decrease by 310 Principal repayment reduces the outstanding loan and cash by the same amount.
8100 Only the owner’s contribution increases equity. Borrowing increases cash and liabilities.
0 Equipment rises and cash falls by the same amount.
950 Accounts receivable increases by the amount earned.
530 Subtract the payment from the outstanding receivable.
Decrease by 420 Principal repayment reduces the outstanding loan and cash by the same amount.
6250 Only the owner’s contribution increases equity. Borrowing increases cash and liabilities.
0 Equipment rises and cash falls by the same amount.
720 Accounts receivable increases by the amount earned.
440 Subtract the payment from the outstanding receivable.
Decrease by 280 Principal repayment reduces the outstanding loan and cash by the same amount.
9200 Only the owner’s contribution increases equity. Borrowing increases cash and liabilities.
0 Equipment rises and cash falls by the same amount.
1180 Accounts receivable increases by the amount earned.
650 Subtract the payment from the outstanding receivable.
Decrease by 530 Principal repayment reduces the outstanding loan and cash by the same amount.
7500 Only the owner’s contribution increases equity. Borrowing increases cash and liabilities.
0 Equipment rises and cash falls by the same amount.
1040 Accounts receivable increases by the amount earned.
670 Subtract the payment from the outstanding receivable.
Decrease by 370 Principal repayment reduces the outstanding loan and cash by the same amount.