Assets, Liabilities, Owners Equity

A building is a short term asset

• True

• False

Employee salaries are considered operating expenses

• True

• False

A building is considered

• capital

• inventory

• operating

salaries are considered

• capital

• inventory

• operating

Accounting is the process of analyzing, classifying, recording, summarizing, and interpreting business transactions.

• True

• False

Finance is the field that studies how people make decisions regarding the allocation of resources over time and handling of risk

• True

• False

An accounting system is a planned process for providing financial information that will be useful to management

• True

• False

The accounting equation is as follows

• Assets = Liabilities + Owners Equity

• Assets=Liabilities - Owners Equity

• Liabilities = Assets + Owners Equity

Revenue are the costs related to earning revenue (or the costs of doing business)

• True

• False