Assets, Capitals and Liabilities (Own, Owe, Owner's Equity)

Question 1

What is an Assest?

Answer 1

Assets are the resources owned by the business i.e capital, land, enterprise

Question 2

What are the two types of assets?

Answer 2

Current and Non-Current

Question 3

What are Non-Current/Fixed Assets?

Answer 3

Fixed assets are resources bought to be used in the running of the business and are not for resale i.e land, vehicle, fixtures

Question 4

What are Current assets?

Answer 4

Current assets are resources used in the course of the business and have a short life span to be used for resale i.e Stock, Debtors, C.A.B, C.A.H

Question 5

What is a Liability?

Answer 5

Liabilities are resources or money owed by the business. The two types of liabilities are Current and Long term liability