Accounting L3

Question 1

Accounting Equation

Answer 1

Assets= Liabilities+ Owner’s Equity

Question 2

Current Assets

Answer 2

A present economic resource controlled by the entity that is reasonably expected to be converted to cash, sold or consumed within the next 12 months after the end of the reporting period

Question 3

Non-Current Assets

Answer 3

A present economic resource controlled by the entity that is not held for resale and is reasonably expected to be used for more than the next 12 months after the end of the reporting period

Question 4

Current Liabilities

Answer 4

A present obligation of the entity that are reasonable expected to be settled with a transfer of an economic resource within the next 12 months after the end of the reporting period

Question 5

Non-current liabilities

Answer 5

A present obligation of the entity that are not expected to be settled with a transfer of an economic resource within the next 12 months after the end of the reporting period

Question 6

Owner’s Equity

Answer 6

Residual interest in the asset of the entity after the liabilities are deducted