Accounting elements

Question 1

what is a current asset?

Answer 1

a current asset is a present economic resource controlled by entity as a result of past events that has the potential to be converted to cash, sold or consumed within the next 12 months

Question 2

what is a non-current asset?

Answer 2

a non-current asset is an economic resource controlled by the entity as a result of past events that has the potential to produce future economic benefits beyond 12 months after the end of the reporting period.

Question 3

what is a current liability?

Answer 3

a current liability is a present obligation of the entity to transfer an economic resource as a result of past events that are required to be settled within 12 months after the end of the reporting period

Question 4

what is a non-current liability?

Answer 4

a non-current liability is an obligation of the entity to transfer an economic resource as a result of past events that are not required to be settled within 12 months at the end of the reporting period.

Question 5

what is owner’s equity?

Answer 5

owner’s equity is the residual interest in the assets of the entity after deducting all its liabilities.

Question 6

what is total assets?

Answer 6

all of the economic resources controlled by the entity as a result of past events.

Question 7

what is total equities?

Answer 7

all of the claims on the assets of the business consisting of both liabilities and owner’s equity.