Accounting Equation Relay
Apply business transactions and keep total assets equal to liabilities plus equity.
Accounting puzzle
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Instructions, device progress and accessibility
Choose Easy, Normal, or Hard and select Practice or UTC Daily. Solve all accounting fields, then Check Answer. Hint and Undo mark a round as assisted. Progress stays on this device. All cases are fictional.
Local progress is checked when play begins.
How to play Accounting Equation Relay
Apply business transactions and keep total assets equal to liabilities plus equity. Choose Easy, Normal or Hard, enter the numeric answers and use Check Answer. Practice and daily challenges are free.
Worked accounting example
Assets $15,000 = liabilities $5,000 + equity $10,000. The owner contributes $2,000 cash. Closing assets become $17,000, liabilities remain $5,000 and equity becomes $12,000.
Accounting formulas and common mistakes
The accounting equation always balances. Cash revenue increases assets and equity; paying current rent decreases both; new bank borrowing increases assets and liabilities; settling accounts payable decreases both assets and liabilities.
All fictional amounts use US dollars for illustration only. Exercises are educational, not business, tax or investment advice.
Frequently asked questions
Why must assets equal liabilities plus equity?
Assets are funded either by borrowing or by owners and accumulated business results.
Does paying suppliers reduce equity?
No. Paying an existing payable decreases cash and the liability, and does not by itself reduce equity.