12 Questions
Define assets in accounting.
Resources owned or controlled by an entity resulting from past events and are expected to flow to the entity.
What is the difference between tangible and intangible assets?
Tangible assets have physical form, while intangible assets have no physical form.
Explain equity or capital in accounting.
Equity or capital is the residual interest in the assets of the entity after deducting all its liabilities.
What does the income statement show in accounting?
The income statement shows the operating performance of the business entity for a given period.
Define revenues and expenses in accounting.
Revenues are increases in assets or decreases in liabilities from business operations, while expenses are decreases in assets or increases in liabilities from business operations.
What is the purpose of the cash flow statement in accounting?
The cash flow statement explains the changes of cash and cash equivalents during an accounting period.
_______ is the art of recording, classifying, and summarizing in a significant manner in terms of money, transactions, and events.
Accounting
_______ assets are resources owned or controlled by an entity resulting from past events and are expected to flow to the entity.
Assets
_______ are existing obligations of the entity arising from past events and are expected to result in an outflow of assets from the entity.
Liabilities
_______ is the residual interest in the assets of the entity after deducting all its liabilities.
Equity
_______ is the money generated from normal business operations, calculated as the average sales price times the number of units sold.
Revenue
_______ are decreases in assets or increases in liabilities arising from business operations during an accounting period.
Expenses
Test your knowledge on accounting principles and financial statements including balance sheet and elements like assets. Learn about the art of recording, classifying, and summarizing financial information.
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