FABM 1 - Q2 (TYPES of MAJOR ACCOUNTS)

Economic resources of business that expected to be of benefit in future time referred as?

• Equity

• Assets

• Liabilities

• Revenues

Liabilities are

• Equal to the sum of assets plus owner’s equity

• Created when stockholder contributed cash to company by stock exchanges

• Obligation of the entity to outsiders

Revenue

• Is a decrease in shareholders’ equity

• Is cost of business

• Has no impact on shareholders’ equity

• Is an increase in shareholders’ equity

Residual interest in the net asset of an entity that remains after deducting its liabilities is

• Owner Equity

• Liabilities

• Assets

• Expenses

All of following are Expenses except

• wages

• rent payable

• delivery charge

• salaries

All economic costs that a business incur through its operation to earn revenues?

• Asset

• Drawing

• Expense

• Revenue

All of the following are Liabilities except

• Notes Payable

• Unearned Revenue

• Accounts Receivable

• Mortgage Payable

The five major accounts are:

• Assets, Liabilities, Capital, Revenue, Drawing

• Assets, Liabilities, Capital, Revenue, Expense

• Drawing, Liabilities, Capital, Revenue, Expense

• Assets, Liabilities, Capital, Drawing, Expense

Items such as equipment and supplies are classified as:

• Expense

• Liabilities

• Revenue

• Assets

An example of a liability is:

• Utility Bill

• Murphy's Drawing

• Accounts Payable

• Accounts Receivable