Accounting Basics

Which of the following are Assets?

• Bank Account

• Bank Loan

• Vehicles

• Bank overdraft

• Furniture and fittings

The following are liabilities .

• Bank Loan

• Stock / inventory

• Mortgage

• Accounts Payable

Equity can also be called Capital

• TRUE

• FALSE

When the business is owed money it is called

• Accounts Receivable

• Account Payable

The following are expenses

• Insurance

• Salaries

• Sales

• Fees Received

• Petrol

The following are types of Income

• Sales

• Fees Received

• Salaries

• Staff Wages

• Advertising

When a business owner invests in the business

• This increases equity

• This decreases equity

When the owner takes money out the business for personal use it is called

• Drawings

• Withdrawal

• Investment

Assets - Liabilities = Equity

• TRUE

• FALSE

The following can cause an increase in equity

• Owners investments +

• Drawings +

• Profit

• Loss