Accounting

What are assets?

• what you owe other parties

• The items your company owns that can provide future economic benefit

• company's value and equity

• going out of business

Capital includes cash or other types of assets that are introduced into the business by the owners

• True

• False

Which of these are examples of liability?

• Cash

• Inventory

• Bank debt

• Taxes owed

• Machinery

Choose the correct double entry rule!

• Capital =assets +liability

• Liability =assets +capital

• Asset =liability +capital

• Asset =liability - capital

What is accounting?

• Represents owner's claims upon a business net assets

• Further process the book-keeping information provided by the book-keeper

• Trade payables and trade receivables

• Things which we cannot see & touch

Define liability!

• Amounts business receive by owner

• The amount of inventory in a business

• The amount we received from a debtors

• The amount owed by the business to outsiders

Cross out the intangible assets!

• trademarks

• Cash

• patents

• copyrights

• Inventory

Pick the feature of current assets!

• Bought for resale

• Not for resale

• Debts which are more than 1 year

• Used for operation of business

What is a feature of capital?

How does double entry system work?

• When Asset increase =credit

  When asset decrease=debit

• When Asset increase =debit

  When asset decrease =credit

• When liability and capital increases =debit

  When liability and capital decrease =credit

• When liability and capital increases =credit

  When liability and capital decrease =debit