EMS GRADE 7

What is an asset?

• Assets are the items that have monetary value and are owned by the business.

• A financial obligation
• A non-tangible resource
• A liability with economic value

What are the two types of assets

• Fixed assets and variable assets
• Liquid assets and illiquid assets
• Current assets and non-current assets
• Tangible assets and intangible assets

What is a liability?

• A liability is a financial gain for a company.
• A liability is an asset that a company owns.
• A liability is a non-financial obligation.
• Liabilities are monies owed, by the business, to other people or other businesses (creditors).

What is a current asset?

• A current asset is an asset that depreciates over time.
• A current asset is an asset that is expected to be converted into cash within 5 years.
• A current asset is an asset that is not included in financial statements.
• can be converted into cash within the next year.

What is a non-current asset?

• A non-current asset is a short-term asset that is expected to be converted into cash within one year.
• A non-current asset is an asset that is not recorded on the balance sheet.
• A non-current asset is an intangible asset that can be easily liquidated.
• will not be converted into cash within the next year (accounting period). Examples include land and buildings

What is capital?

• Income is all the money that the business earns.

• Capital is a term used in sports for the team with the most wins.
• Capital refers to the top part of a building.
• Capital is a type of letter in the alphabet.

What is a non-current liability?

• Non-current liabilities are obligations that are due within the next 12 months.
• Non-current liabilities are assets that a company owns.
• Non-current liabilities are expenses that have already been paid.
• Income is all the money that the business earns.

What is a current liability

• Income is all the money that the business earns.

• A current liability is an asset that is due within one year
• A current liability is a long-term debt of a company
• A current liability is an expense incurred in the past

What is an income?

• Income is the money that an individual or business makes.

• Income is the money that an individual receives from the government for no reason.
• Income is the money that an individual receives in exchange for providing a bad service.
• Income is the money that an individual receives as a gift from a friend.

What is expenses?

• Expenses are profits earned from investments.
• Expenses are assets owned by a company.
• Expenses are liabilities on a balance sheet.
• An expense is payment for services and consumable goods that the business buys in order to keep the business running.