Finanic and accounting

Front

What does the accounting equation state?

Back

Asset = Liabilities + Equity

Front

What is accounting?

Back

The process of recording, classifying, and interpreting financial transactions

Front

Which of these is an asset?
Options:
cash in the bank,
Loan from bank,
wages payable,
Owner's capital

Back

cash in the bank

Front

What is a liability?

Back

Something the business owes to others.

Front

Which financial statement shows what a company owns and owes at a specific date? Options: Income statement, Cash flow statement, Balance sheet, Budget

Back

Balance sheet

Front

Which financial statement shows a company’s income and expenses? Options: Balance sheet, Income statement, Statement of changes in equity, Trial balance

Back

Income statement

Front

What is revenue?

Back

Income earned from selling goods or services.

Front

What are expenses?

Back

Costs incurred to generate revenue.

Front

What is equity?

Back

The owner’s interest in the business

Front

What is the purpose of journal in accounting?

Back

To record transactions in chronological order.