accounting calculations

Question 1

what are current liabilities?

Answer 1

expenses that a company expects to pay off with in one year

Question 2

examples of current liabilities

Answer 2

wages payable, dividends payable, interest payable, unearned revenues

Question 3

examples of noncurrent liabilities

Answer 3

warrant liability, deferred credit, post-retirement credit

Question 4

examples of an asset

Answer 4

account receivable, land, equipment, raw materials, credit with vendors

Question 5

tangible vs non tangible asset

Answer 5

tangible means it has a specified monetary value. Nontangibles have a harder time figuring out their value.

Question 6

equity

Answer 6

what is owed to the owners

Question 7

what is an asset

Answer 7

economic resources that a business owns or controlled

Question 8

what is a liability

Answer 8

a debt or obligation a business has

Question 9

examples of owner’s equity

Answer 9

Net income/loss, owners withdrawals and investments

Question 10

where is the accounting equation used most frequently

Answer 10

balance sheet

Question 11

what is an income statement

Answer 11

Revenues - expenses= net income

Question 12

what is a trial balance

Answer 12

to prove that the final amount of debit equals the final amount of credit