Elements in accounting Flashcards
1
Q
Assets
A
- controlled by accounting entities
- related to past transactions
- have future economic benefits of company
2
Q
classification of assets
A
tangible (have physical characteristics)
intangible (without existence physical)
current (can be converted into cash within one year)
non-current
3
Q
assets is part of…
A
balance sheet
4
Q
asset accounts includes:
A
cash at bank account receivable other receivable prepaid expense land building plant and equipment accumulated depreciation
5
Q
Liabilities
A
present obligation of company
arising from past transactions
result in the future outflow of company
6
Q
classification of liabilities
A
current ( less than 1 year)
non-current
–> based on the debt due date
7
Q
Equity
A
what is put in by the owners or a residual claim on the assets
= investment by owner - drawings + income - expense
8
Q
Income
A
sth the company earned
direct
indirect
increase equity
9
Q
Expense
A
cost incurred of the entities
decrease in equity
