Classification Of Accounts

Question 1

What are the main categories of accounting?

Answer 1

The main categories of accounting are Assets, Liabilities, and Capital.

Question 2

What are current assets?

Answer 2

Current assets are financial assets that can be converted into cash within a year.

Question 3

What are non-current assets?

Answer 3

Non-current assets are possessions of the business used repeatedly and last a long time.

Question 4

What is a financial asset?

Answer 4

A financial asset is an asset that can generate income or cash flow.

Question 5

What is a liability?

Answer 5

Liabilities are debts that the business owes to someone else.

Question 6

What are current liabilities?

Answer 6

Current liabilities are debts that will be repaid within one year.

Question 7

What are non-current liabilities?

Answer 7

Non-current liabilities are debts that will be paid off over more than a year.

Question 8

What is capital in accounting?

Answer 8

Capital refers to the amount of money invested in the business by the owners.

Question 9

What is owner’s equity?

Answer 9

Owner’s equity is the amount of money the owners have invested in the business.

Question 10

What are examples of assets?

Answer 10

Examples of assets include vehicles, equipment, and land/buildings.

Question 12

INCOME

Question 13

Revenue qentrarea Oy ousintss Hnro ugnCseling stoCK

Question 14

POR Ocars Wnen Ota) 1ncome earned exceeds +ne 40 ta) expenseS coneO

Question 15

0SS reSuIłs wnen exDenses ore more Man gnerated Income

Question 16

OmisSion wnen somening )3 801a on benaiF 04 5omeone else.

Question 17

C9 Rea) C3tatt (seling nomes) estare)

Question 18

E XPE NSES

Question 19

COStS tnat contrì bu te to busne ss ‘S overal) coSt 04 aong busnt5

Question 20

Any cosS earneQ as resul} tO a bu SneSs’3_atteMpy to qeneratt nc9me

Question 21

e-q salary ; Fces Statio nato i Ren

Question 22

Electromc Fund Trans fer (EFT)

Question 23

The eeCtYOnic rans Fer ot money

Question 24

between peopie

Answer 24

b anes & companies used

Question 25

ro 0au bils

Answer 25

5ea moncy +0 riends erc

Question 26

3evviCes rendered

Question 27

the running 04 +ne o Usines

Question 28

NO 1Qsting voIue - uou buy them & UIe tneM up

Question 29

Debit Order (D/0)

Question 30

COmmiMtnt between you and a Srd

Question 31

parey to tae an agr«d aMOuNt ot money

Question 32

Out ot your banK account every mon+h

Question 33

to pay or a service or repay a \04n

Question 34

Maint enance

Question 35

ExpenseS decrease oE

Question 36

Owners Qaity - 0tal vaue gt a

Question 37

(ompany's assets mat can be

Question 38

wnat busi ness)

Question 39

petty casn sman amount 04 money

Question 40

NitnOwt}

Question 41

avaliaOe For smal expt nsts (CMeque

Question 42

revenue - Money

Question 43

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