definition of main 5

Question 1

assets

Answer 1

resources owned by the business that is expected to provide future benefits.

Question 2

liabilities

Answer 2

obligations owed by the business to others that is expected to be repaid in the future.

Question 3

equity

Answer 3

claims on the owner on the the assets of the business.

Question 4

expenses

Answer 4

costs incurred to earn an income in the same accounting period.

Question 5

income

Answer 5

money earned from the activities of the business.

Question 6

drawings

Answer 6

assets taken out from thr business by the owner for personal use.