Assets & Liabilities

Question 1

Types of Accounting

Answer 1

Financial Accounting
Management Accounting
Tax Accounting
Forensic Accounting
Auditing

Question 2

Accounting

Answer 2

The process of identifying, measuring, interpreting and communicating financial and other information to interested parties.

Question 3

The Accounting Process

Answer 3

1. A transaction occurs
2. Source documents are produced e.g receipts or invoices - evidence of the transaction.
3. Journals are written

Question 4

Transaction

Answer 4

A financial event that takes place at a specific moment

Question 5

Assets

Answer 5

Items of value that an individual/business OWNS e.g cash at bank, real estate, shares etc.

Question 6

Intangible Assets

Answer 6

Non-physical and often lack a monetary value e.g education, patent, trademarks etc.

Question 7

Tangible Assets

Answer 7

Physical items with a monetary value e.g cars, houses.

Question 8

Current Tangible Assets

Answer 8

Tangible assets used everyday e.g cash or card

Question 9

Long Term Tangible Assets

Answer 9

Tangible assets that you don’t cash out immediately e.g car or house

Question 10

Liabilities

Answer 10

Items or amounts that an individual/business OWES e.g bank overdraft, loan, mortgage, accounts payable etc.

Question 11

Appreciating Asset

Answer 11

Items that will increase in value over time.

Question 12

Depreciating Asset

Answer 12

Items that will decrease in value over time.