Elements of Financial statements and the Accounting Equation Flashcards
1
Q
What is an Asset?
A
Assets are resources owned or contrplled by the business to carry out its business activities.
2
Q
What is a Liability?
A
Amount that rge busiess owes to other businesses or people
3
Q
State the basic accoynting equation
A
Assests= Liabilities + Equity
4
Q
What is the meaning of a bank overdraft?
A
The business withdrew more money that it has in the account which has the negative balance in the end.
