What this practice covers
These questions are drawn from past CIE 0452 Accounting papers and filtered to the accounting equation. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on the accounting equation, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Writing the equation as assets = liabilities − capital.
- Classifying a loan repayable in six months as non-current.
- Putting inventory among non-current assets because it is "goods".
- Treating drawings as an expense in the income statement.
- Forgetting that buying an asset for cash leaves total assets unchanged.
- Saying capital is the cash in the business. Capital is the owner's claim, and it is rarely held as cash.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: The accounting equation revision notes.