3A QUIZ 3 Ch 1-3

CASH

• Asset

• Liability

CAPITAL

• Equity

• Asset

MOTOR VEHICLE

• Liability

• Asset

LOAN

• Asset

• Liability

LIABILITY = business ……….. to others

• OWN

• OWE

Owner invested $10000 into the business.

BUSINESS RECORDS:

• cash +

• cash -

Capital = …… contributed by owner into business

• cash only

• any RESOURCES eg cash / vehicle

NOT an asset

• cash

• motor vehicle

• loan

• equipment

INVENTORY

• asset

• liability

I bought the equipment and intend to sell to customers

• equipment +

• inventory +