Accounting Equation Flashcards
Accounting equation is equal to
Asset=Capital+Liabilities
Asset-Liabilities=?
a) Capital
b) Net worth
Balance sheet is the statement of
Assets,Liabilities and Capital
Liabilities are normally shown as debit or credit balanc
credit balance
The excess of assets over liabilities is called ?
Capital
Unearned income is ?
Liability
Difference between assets and liabilities is?
Capital
Loan from bank is?
Liability
Generally, accounting equation is base of ?
Balance sheet
Creditor is liability of current or non-current
current
Long term bank loan is Non-current liability or current liability
Non-current liability
Unpaid expenses are considered as liability or asset?
Liability
Goodwill and copy rights are asset or liability?
asset
Goodwill and copy rights are tangible or intangible asset?
intangible asset
Assets of a businesses are called
Resources
Capital and liabilities are called
Sources
Owner withdraw cash is equal to
Drawing
Cash invested by the owner is called?
capital
Cash paid to creditor will increase or decrees creditor
Creditor
Cash received from debtor will decrease or increase debtor
decrease
Cash received from debtor will decrease or increase cash
Increase
