Business Accounting Overview

Which of the following constitutes a service concern in business?

Which type of business organization requires at least five persons to form?

Accounts Receivable is classified under which category of assets?

Which of the following represents a permanent account?

What does the term 'Credit' signify in accounting?

Nature of Businesses

Manufacturing: Factories
Merchandising: Retail, buy and sell
Service: Laundry, hotels, restaurants, law firms, doctors, freelancing
Agriculture

Major Accounts

Assets: Resources controlled by the business
- Current Assets: Cash, cash on hand, inventory, accounts receivable
- Non-Current Assets Land, building, equipment, furniture and fixtures
Liabilities: Obligations of the business
- Current Liabilities: Short-term obligations (e.g., payables)
- Long-Term Liabilities: Long-term obligations
Equity/Capital: Owners' investment in the business
- Sole Proprietorship, Partnership, Corporations, Cooperatives

Forms of Business Organizations

Sole Proprietorship: Managed by one person.
Partnership: Managed by two or more.
Corporation: Managed by 5 or more persons.
Cooperative

Golden Rules of Accounting

Accounting equation: Assets = Liabilities + Equity
AWE (Asset, Withdrawal, Expenses = Liabilities, Income, Capital)

5 Point of View

Collected (Debit)
Paid (Credit)
Rendered Services (Credit)
Sold (Debit)
Purchased (Credit)

This quiz covers the fundamental aspects of business accounting, including the nature of businesses, major accounts like assets and liabilities, and different forms of business organizations. Test your understanding of key concepts such as accounting equations and the golden rules of accounting.