03 01 02 Accounting Principles Flashcards
1
Q
What is the statement of financial position?
A
It shows the assets and liabilities of a business
2
Q
What is a non-current asset?
A
An asset a business will hold for more than on year
3
Q
What is a current asset?
A
An asset a business will hold for less than one year
4
Q
What is a current liability?
A
An amount a business owes than needs to be paid within a year
5
Q
What is a non-current liability?
A
An amount a business owes that is due to be paid in more than one year
6
Q
What is the accounting equation?
A
Assets - Liabilities = Capital
7
Q
What is the statement of profit and loss?
A
Its shows the amount of money a business has earned (income) and spent (expenses)
