FUNDAMENTALS OF ACCOUNTANCY BUSINESS AND MANAGEMENT 1 Q3S2

It represents what the company owns.

• ASSETS

• LIABILITIES

• CAPITAL

• REVENUE

• EXPENSES

It is the claims of external parties from the entity.

• ASSETS

• LIABILITIES

• CAPITAL

• REVENUE

• EXPENSES

It reflects the residual claims or the net assets of the owners of the entity.

• ASSETS

• LIABILITIES

• EQUITY

• REVENUE

• EXPENSES

Amounts received by a business earned as a result of selling or rendering a service.

• ASSETS

• LIABILITIES

• EQUITY

• REVENUE

• EXPENSES

Amounts consumed by the business to operate.

• ASSETS

• LIABILITIES

• EQUITY

• REVENUE

• EXPENSES

TRUE OR FALSE:

The customer paid in advance for rent so the accounting title that I'm going to use in my book of account is PREPAID RENT.

• TRUE

• FALSE

TRUE OR FALSE:

Utilities Expense are expenses incurred such as water, electricity and cable.

• TRUE

• FALSE

TRUE OR FALSE:

There are two types of ASSETS Current Assets and Non-current assets. Non-current assets are assets easily converted into cash within 12 months.

• TRUE

• FALSE

TRUE OR FALSE:

There are two types of LIABILITIES Current Liabilities and Non-current Liabilities. Non-current liabilities are obligations can easily paid in a short period of time or within 12 months.

• TRUE

• FALSE

TRUE OR FALSE:

The Capital account of the equity represents the net investments of the business.

• TRUE

• FALSE