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IK 09 Buchführung und Bilanz (EN)

IK 09 Bookkeeping and Balance Sheet

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Knowledge Check

Four questions for self-assessment. Click on each question to see the correct answer and explanation.

What is the basic accounting equation?
  • A) Assets + Liabilities = Equity
  • B) Assets = Liabilities
  • C) Assets = Liabilities + Equity
  • D) Equity = Liabilities

Correct Answer: C. The basic accounting equation is Assets = Liabilities + Equity, as all assets are financed either by debt or equity.

Which journal entry is used for the acquisition of a new company car?
  • A) Bank to Vehicles
  • B) Vehicles to Bank
  • C) Vehicles to Cash
  • D) Cash to Vehicles

Correct Answer: B. When purchasing a company car, the value of the vehicle is capitalized (Debit) and simultaneously the bank account is credited (Credit).

What is the main function of the balance sheet?
  • A) To represent the profit or loss of the company
  • B) To check the liquidity of the company
  • C) To represent the financial position at a specific date
  • D) To support future planning of the company

Correct Answer: C. The balance sheet shows the financial position of the company at a specific date, while the income statement represents the performance.

How is the depreciation of a machine booked?
  • A) Machines to Depreciation
  • B) Depreciation to Machines
  • C) Expense to Machines
  • D) Machines to Expense

Correct Answer: A. When depreciating, the value of the asset is reduced (Credit) and simultaneously an expense is recorded (Debit).