balance sheet

Question 1

assets

Answer 1

present economic resources under the control of a business entity, with the potential to produce future economic benefits

Question 2

liabilities

Answer 2

present obligations of an entity to transfer economic resources to another entity to produce economic benefits

Question 3

owners equity

Answer 3

the residual interest an owner has in a business after liabilities are deducted from assets

Question 4

revenue

Answer 4

the income generated from the sales of goods and services, associated with the main operations of an entity before any costs or expenses are deducted. this also known as turnover

Question 5

expenses

Answer 5

money spent or costs incurred in an entitys effort to gerate revenue. this represents the cost of dong business

Question 6

liquidity

Answer 6

the ability of a business to meet its short term obligations as they fall due. current assets minus current liablitys