definition and example

Question 1

What is the definition of Expense and what is an example?

Answer 1

D - a cost incurred in running a business
E.g. shop fittings

Question 2

What is the definition of Asset and what is an example?

Answer 2

D - An item of value a business owns
E.g. company vehicle

Question 3

What is the definition of Liability and what is an example?

Answer 3

D - An amount of money a business owes
e.g a bank loan

Question 4

What is the definition of Owner’s Equity and what is an example?

Answer 4

D- The amount the owner has invested in a business
E.g Capital

Question 5

What is the definition of Overdraft and what is an example?

Answer 5

D- to withdraw more money than you currently have in a bank account, up to a pre-set limit
e.g I have $3 in my bank account but I spent $5 on a packet of Lollies. My overdraft is now $2

Question 6

What is the definition of Consumer and what is an example?

Answer 6

D- A person who uses goods or services
e.g me