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Questions and Answers
Define assets in accounting.
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?
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.
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?
What does the income statement show in accounting?
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Define revenues and expenses in accounting.
Define revenues and expenses in accounting.
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What is the purpose of the cash flow statement in accounting?
What is the purpose of the cash flow statement in accounting?
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_______ is the art of recording, classifying, and summarizing in a significant manner in terms of money, transactions, and events.
_______ is the art of recording, classifying, and summarizing in a significant manner in terms of money, transactions, and events.
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_______ assets are resources owned or controlled by an entity resulting from past events and are expected to flow to the entity.
_______ assets are resources owned or controlled by an entity resulting from past events and are expected to flow to the entity.
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_______ are existing obligations of the entity arising from past events and are expected to result in an outflow of assets from the entity.
_______ are existing obligations of the entity arising from past events and are expected to result in an outflow of assets from the entity.
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_______ is the residual interest in the assets of the entity after deducting all its liabilities.
_______ is the residual interest in the assets of the entity after deducting all its liabilities.
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_______ is the money generated from normal business operations, calculated as the average sales price times the number of units sold.
_______ is the money generated from normal business operations, calculated as the average sales price times the number of units sold.
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_______ are decreases in assets or increases in liabilities arising from business operations during an accounting period.
_______ are decreases in assets or increases in liabilities arising from business operations during an accounting period.
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