Accounting equation

The Accounting Equation must always be in balance? 

• True
• False

Assets 

• Anything owed by the company
• Anything owned of value by the company

Furniture is regarded as

• Assett

• Fixed Assett

• Liability

• Current Liability

Owners equity just refer to the Capital of the owner

• True

• False

REM: Define what an asset is

• The debt of the business.

• The profit accumulated in the business.

• The income and expenditure within the business.

• The possessions owned and used by the business.

CRE: Make a list fixed assets that is found in a business.

• Land and buildings, Equipment, Vehicles

• Capital, Drawings, Income

• Trading inventory, Bank, Debtors

• Loan Deposit, Interest

APP: Solve the equation: OE= R989 000 L= R565 750 A= ?

• Assets= R1 554 750

• Assets= R423 250

• Assets= R1 750 554

• Assets= R1 455 057

Assets are NOT resources owned by or owed to the business.

• TRUE

• FALSE

What are the two categories of assets?

• Financial Assets

• Current Assets

• Physical Assets

• Non-Current Assets

Liabilities are debts of the business.

• True

• False