Accounting equation

Verified strong92%

Assets = Liabilities + Capital, and how every transaction keeps it in balance.

Mastery in this scope92%

3 diagnostics · last practised 5 days ago

Why this topic exists: Seeded from this scope’s AI-proposed learning structure.

The same topic in your other scopes

Mastery is scope-specific: strong for one goal does not mean strong for another.

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None recorded on this topic.

What you were actually asked, what you answered, and how it was scored.

A business has assets of HK$80,000 and liabilities of HK$30,000. What is the capital, and what happens to it if the owner withdraws HK$5,000 cash?
92%
Your answer: Capital is HK$50,000 (80,000 − 30,000). A HK$5,000 withdrawal is drawings: assets fall to HK$75,000 and capital falls to HK$45,000. Liabilities are unchanged.
Strong answer — the key points are all there.
Completed 5 days ago · confidence 80%
A business has assets of HK$80,000 and liabilities of HK$30,000. What is the capital, and what happens to it if the owner withdraws HK$5,000 cash?
74%
Your answer: Partial answer — got the general idea but missed part of the reasoning.
Partly right. Some of the core reasoning is still missing.
Completed 11 days ago · confidence 60%
A business has assets of HK$80,000 and liabilities of HK$30,000. What is the capital, and what happens to it if the owner withdraws HK$5,000 cash?
56%
Your answer: Partial answer — got the general idea but missed part of the reasoning.
Partly right. Some of the core reasoning is still missing.
Completed 17 days ago · confidence 60%