Accounting Basic

Resources which a business owns

• Assets

• Liabilities

• Capital

• Revenue

Claims which a business owes

• Assets

• Liabilities

• Capital

• Revenue

Bank Loan is a:

• Asset

• Liability

• Capital

• Expense

From the following which is an asset

• Salary

• Sales

• Bank

• Trade Payable

Calculate the amount of CAPITAL from the following data:

Cash $10,000; Machinery $6,000; Bank Loan $2,000

• $14,000

• $6,000

• $18,000

• $2,000

From the following which is correct:

• Assets = Liabilities - Capital

• Capital = Assets - Liabilities

• Liabilities = Assets + Capital

• Capital = Assets + Liabilities

From the following which is incorrect:

• Increase in Asset - Debit

• Decrease in Liability - Debit

• Increase in Capital - Debit

• Decrease in Expense - Credit

Cash is a/an

• Asset

• Liability

• Capital

• Revenue

Resources invested by the owner/s in the business is known as:

• Assets

• Liabilities

• Capital

• Revenue

Salary is a/an:

• Asset

• Liability

• Revenue

• Expense