Accounting concepts

What do we call the cash contribution an entrepreneur gives to a business?

• Capital

• Current income

• Cash

• Fixed deposit

Capital can not be one of the following listed items.

• Money

• Vehicle

• Land and buildings

• Insurance

Assets are

• Items that a business owns and can sell for cash

• It's the general expenses of a business

• It is a loan to the owner of a business

• It is a loan to a bank

Which item is not an asset?

• Land and buildings

• Vehicles

• Bank account

• Stationery

Which item from the list is a Liability?

• Loan

• Bank account

• Vehicles

• Current income

What is the main disadvantage of a loan?

• Interest needs to be paid

• The business can close when they have a loan

• The business can earn interest on the loan

Selling products to consumers can be seen as

• An income

• An expense

• An asset

• A liability

Providing a service to clients and receiving money

• Is an income

• Is an expense

• Is an asset

• Is a liability

Incomes from providing a service is seen as

• Sales

• Rent income

• Current income

• Interest income

Which item is not an expense?

• Material used in the business to render a service

• Wages

• Salaries

• Stationery

• Equipment