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What are assets?

• Assets are only physical items like machinery and equipment
• Assets are intangible items that cannot be converted into cash
• Assets are economic resources owned by an individual or business, which have value and can be converted into cash.
• Assets are liabilities of a business

What are liabilities?

• Liabilities are the debt of a business

• Liabilities are expenses incurred by a company
• Liabilities are revenues generated by a company
• Liabilities are assets owned by a company

What is owner's equity?

• Owner's equity is the total investment the owner has in the business

• Owner's equity is the profit earned by the business.
• Owner's equity is the amount of money the owner invests in the business.
• Owner's equity is the total assets of the business.

What is capital?

• Capital is a type of letter in the alphabet.
• Capital is the owner the money put into the business

• Capital refers to the top part of a building.
• Capital is a term used in sports to describe a team's leadership.

What are drawings in a business?

• Drawings are the funds withdrawn by the owner for personal use.
• Drawings are financial statements showing company profits.
• Drawings are architectural sketches used for building design.
• Drawings are sketches of products for marketing purposes.

What is income?

• Income is the money that an individual or business spends on goods and services.
• Income is the money that an individual or business borrows from others.
• Income is the money that an individual or business receives in exchange for providing a good or service, or through investments.
• Income is the money that an individual or business saves for future use.

What is a Sole Trader?

• A government-owned business
• A company with multiple owners
• An individual who owns and operates their business alone.
• A business that operates online only

What is a subsidiary journal?

• A subsidiary journal is a type of musical instrument
• A subsidiary journal is a tool for gardening
• A subsidiary journal is a document used to track employee attendance
• A subsidiary journal is a journal in which transactions are summarized before going in the General Ledger

How do you calculate profit/loss?

(a)  

How to calculate owner's equity?

(a)