Introduction to Accountancy

Liabilities often have the word __________ in their account title.

• Assets
• Payable
• Paid
• Equity

This is an example of an asset

• cash
• accounts payable
• power bill

The difference between assets and liabilities.

• ethics

• GAAP

• debts

• Capital

An amount owed

• assets

• liability

• equity

• account

Anything of value that is owned.

• Liability

• Equity

• Asset

• Expense

The definition of an Asset is

• The cost of running the business

• Items of value owned by the business

• Items owned by the business

• money owed by the business to external parties

A Bank Loan is classified as a:

• Revenue

• Expense

• Asset

• Liability

when the owner takes money out of the business's account it is called _________?

• credit

• drawings

• debt

• borrowing

Goodwill is a

• Tangible assets

• Liquid assets

• Intangible assets

• Intangible Liabilities

Mr. Moonrise started a business for buying and selling of stationery with ₹5,00,000 as an initial investment. Of which he paid ₹1,00,000 for furniture, ₹2,00,000 for buying stationery items. The amount of capital will be

• ₹2,00,000

• ₹5,00,000

• ₹1,00,000

• ₹3,00,000