What are the two classifications of Assets?
Current and Non-Current
The two classes of liabilities are Current and Non- Current True or False?
True
An example of a current Asset is a motor car yes or no?
No
An example of a non current liability is a mortgage payment yes or no?
Yes
What is the accounting equation?
Assets = Capital + Liabilities
Give two examples of an Asset
Vehicle, Stock, Bank Cash etc.
Give two examples of a liability
creditors, loans, mortgages, any form of payable
What is capital defined as and give one example
Capital are resources invested into the business and could be in the form of cash or equipment etc.
Machinery bought for the business is classed as a current asset True or False?
False
A customer who owes us money is classed as a liability True or False
False
You just started your roti shop business and started off with a stove, refrigerator and money in the bank all these can be called what?
Your Capital in the form of different assets
Assets are the resources that the business owes. Is this statement right or wrong?
Wrong
Which of the following does not belong ( Buildings, Land, Money, Loans, Debtors)
Loans (all the others are examples of assets except for loans)
Which of the following does not belong (Payments overdue, Mortgages, Loan Payments, Stock)
Stock (All others are examples of liabilities)
What is the name of the other type of final statement other than the income statement?
Balance Sheet/ Statement of Financial Position
What does a balance sheet show?
Balance sheets are used to show the financial position of the business at the end of the year, showing all what the business owns vs what is owes
