Accounting

Question 1

Types of Profit

Answer 1

Net profit before tax – operating profit minus interest charges and expenses
Net profit after tax – shows amount available for shareholders
Unallocated profit – profit after paying dividends and transfer to general reserve

Question 2

What is an asset?

Answer 2

An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
An asset is anything of value or a resource of value that can be converted into cash.

Question 3

What is a liability?

Answer 3

An obligation to or something that you owe somebody else. Liabilities are defined as a company’s legal financial debts or obligations that arise during the course of business operations.
Liabilities are settled over time through the transfer of economic benefits including money, goods, or services