Accounting Equations L2

Question 1

Accounting Equation is expressed as…(formula)

Answer 1

Asset = Liabilities + Equity

Question 2

resources owned by a business that have economic value. Examples include cash, inventory, property, and equipment.

Answer 2

Assets

Question 3

represent obligations or debts that the company owes to external parties. This can include loans, accounts payable, and mortgages.

Answer 3

Liabilities

Question 4

residual interest in the assets of the company after deducting liabilities. It represents the owners’ claim on the assets

Answer 4

Shareholder’s equity