Definition

Question 1

Define assets.

Answer 1

Assests are resources owned by a business that are expected to provide future benefits.

Question 2

Define liabilities.

Answer 2

Liabilities are obligations/debts owed by a business to external parties that are expected to be settled in the future

Question 3

Define equity.

Answer 3

Equity is the claims of the owner on the net assets of the business

Question 4

Define current assets.

Answer 4

Current assets refer to resources owned by a business that can be easily converted into cash within one accounting period

Question 5

Define non-current assets.

Answer 5

It is the resources owned by a business that are not easily converted into cash and are expected to provide future benefits to the business for more than one accounting period

Question 6

Define current liabilities.

Answer 6

Current liabilities refer to obligations or debts that are expected to be paid within one accounting period

Question 7

Define non-current liabilities.

Answer 7

Non-current liabilities refer to obligations or debts that are expected to be paid in more than one accounting period