Business Characteristics Unit One

What is something you already own (positive cash value)?

• asset

• liability

What is debts you owe (negative cash value)?

• assets

• liabilities

MONEY IN A SAVINGS ACCOUNT

• asset

• liability

CAR LOAN

• asset

• liability

RENT

• asset

• liability

Owners equity just refer to the Capital of the owner

• True

• False

Assets 

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

If Assets are $7,300 and Liabilities are $500, how much is Capital?

• $7,800

• $7,300

• $6,800

If Capital is $31,400 and Liabilities are $15,500, how much are Assets?

• $46,900

• $15,500

• $15,900

Which one is right?

• Asset = Owner's equity + Liability

• Asset = Owner's equity - Liability

• Asset + Owner's equity = Liability

• Asset + Owner's equity = expense