Random Flashcards
1
Q
What r some liabilities?
A
Creditors
Loan
Mortgage
Bank overdraft
2
Q
Formula for capital
A
Total assets - total liabilities
3
Q
Basic accounting equation formula
A
A=L + P
4
Q
Extended accounting equation
A
A+E=L+P+R
5
Q
What r assets
A
Things of value owned by the business
6
Q
What are Liabilities
A
An amount owned by the business to outside persons
7
Q
What is Proprietorship
A
Net worth of a business
8
Q
What are Expenses
A
Costs incurred in the running of a business
9
Q
Who r debtors
A
People who owe money to firms
10
Q
Who is a creditor
A
A person to whom the business owes money to
11
Q
What are drawing
A
Any cash or good taken by the owner for personal use
