Listing + Desrcibing

Question 1

List the 5 categories of accounts

Answer 1

1. Revenue
2. Expenses
3. Assets
4. Liabilities
5. Owner’s Equity

Question 2

Describe each of the five categories of accounts

Answer 2

1. Revenues - income earned by the business
   This income is received/earned by the business during the normal operations of the business.
2. Expenses - cash out of the business
   e.g. Insurance, lighting, cleaning products, uniforms, water bills, signage, parking, training
3. Assets - what the business owns
   E.g. Bank accounts, stock, furniture, business premises.
4. Liabilities - what is owed
5. Owner’s Equity - How much money does the owner have invested