4.1 ALOE Introduction

Question 1

Common Business Assets

Answer 1

Cash
Accounts receivable
Supplies
Furniture
Auto
Equipment
Land
Building

Question 2

Common Business Liabilities

Answer 2

• Accounts Payable
  
  • This is money that the company owes to others, often suppliers. They provided us with goods and we promised to pay them back by a certain date.
• Taxes Payable
• Bank Loan
• Car Loan
• Mortgage

Question 3

Net worth applies to

Answer 3

individuals, while Owner’s Equity applies to business owners

Question 4

Calculation of Personal finicial Position

Answer 4

Total values of items owned-total owed to creditors=Personal net worth