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Key categories and examples

Created by

NelyFatinnAfisah AtikahEillieAnis
NelyFatinnAfisah AtikahEillieAnis
Malaysia

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Key categories and examples

by NelyFatinnAfisah AtikahEillieAnis
1

Which of the following is an asset?

2

Which item is NOT an asset?

3

Which is a liability?

4

Which item represents a liability?

5

Which is revenue?

6

Which option is revenue?

7

Which is part of owner's equity?

8

Which transaction increases owner's equity?

9

Which is an expense?

10

Which decreases owner's equity when incurred?

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Assets are resources owned by the business, like cash.

Accounts payable is a liability, not an asset.

Liabilities are obligations; accounts payable is money owed.

A bank loan payable is a borrowings liability.

Revenue is income from delivering goods or services.

Revenue reflects earnings from operations.

Common stock represents owner-claim in the business.

Owner investments increase equity; expenses or liabilities do not.

Expenses cost the business, e.g., rent.

Expenses reduce net income and thus owner's equity.

 
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