Accounting Knowledge

What is the basic accounting equation?

• Assets - Liabilities = Equity

• Assets = Liabilities - Equity

• Assets = Liabilities + Equity

• Assets + Liabilities = Equity

Name the three main financial statements in accounting.

• expense statement, asset sheet, and budget statement

• revenue statement, liability sheet, and investment statement

• profit statement, equity statement, and liquidity statement

• income statement, balance sheet, and cash flow statement

Define the term 'assets' in accounting.

• Assets in accounting are the resources owned by a company that have economic value and can be used to generate future economic benefits.

• Assets are intangible assets in accounting

• Assets are expenses in accounting

• Assets are liabilities in accounting

What is the formula for calculating net income?

• Net Income = Total Revenue + Total Expenses

• Net Income = Total Revenue x Total Expenses

• Net Income = Total Revenue - Total Expenses

• Net Income = Total Revenue / Total Expenses

Explain the concept of double-entry accounting.

• Double-entry accounting is a system where every transaction is recorded in at least two accounts, with one account debited and the other credited.

• Double-entry accounting is a system where every transaction is recorded in three accounts.

• Double-entry accounting is a system where every transaction is recorded in only one account.

• Double-entry accounting is a system where every transaction is recorded in at least two accounts, with both accounts debited.