Accounts 3

What are examples of Assets?

• Cash, investments, real estate, vehicles, equipment, intellectual property

• Debt, liabilities, expenses

• Patents, trademarks, goodwill

• Gold, cryptocurrency, furniture

Can you provide examples of Liabilities?

• Salaries payable, Rent payable, Taxes payable

• Accounts Receivable

• Equipment

• Inventory

Define Capital in the context of accounts.

• Total liabilities of a business

• Number of employees in a company

• Amount of revenue generated in a year

• Financial value of assets owned by a business or individual.

Who are Debtors in accounting?

• People who invest in a company

• Individuals or entities that owe money to a company.

• Businesses that sell products to a company

• Individuals or entities that lend money to a company

Explain who Creditors are in accounting.

• Creditors are companies that purchase goods from a company.

• Creditors are entities that a company owes money to.

• Creditors are entities that a company borrows money from.

• Creditors are individuals who invest in a company.

What is the definition of a Balance Sheet?

• A Balance Sheet is a report that shows only the revenue of a company

• A Balance Sheet is a document that lists all the expenses of a company

• A Balance Sheet is a statement that focuses on the marketing strategies of a company

• A Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Name some common examples of Assets.

• Cash, investments, real estate, vehicles, equipment, intellectual property

• Buildings, copyrights, loans, bonds

• Land, trademarks, debts, stocks

• Gold, patents, liabilities, cryptocurrencies

List some typical Liabilities found in a balance sheet.

• Mortgages

• Loans, accounts payable, accrued expenses

• Retained earnings

• Inventory

What is the role of Capital in accounting?

• Capital in accounting is not relevant for financial reporting.

• Capital in accounting represents the financial resources contributed by the owners of a business.

• Capital in accounting is used to track employee salaries.

• Capital in accounting refers to physical assets only.

How are Debtors different from Creditors?

• Debtors are individuals, and creditors are companies.

• Debtors are always businesses, and creditors are always individuals.

• Debtors owe money, and creditors are owed money.

• Debtors lend money, and creditors borrow money.