Different Types Of Accounts Gr 8

Question 1

Name the five main groups used in accounting

Answer 1

Assets
Owner’s equity
Liabilities
Income
Expenses

Question 2

Define the term assets

Answer 2

Any possession, with monetary value, owned by the business/individual

It can be changed back into money

Question 3

Define a fixed asset

Answer 3

Possession that has a long lifespan which can be used to generate income

Question 4

Define current assets

Answer 4

Have a short lifespan that can be converted to cash or used up within one year

Question 5

Name four types of fixed assets

Answer 5

Land & buildings
Equipment
Vehicles

Question 6

Name the six types of current assets

Answer 6

Bank
Cash
Petty cash
Cash float
Debtors
Stock