Accounting Knowledge
These add value to the business/firm.
Assets
Fixed assets are also called.
Non-current assets
Mortgage is classified as a.
Long-term liability
Red Cross is what type of business entity?
Non-profit
Assets = $23,000; Liabilities = $16,000. Solve for capital.
$7,000
This separates the debit side from the credit side.
T-accounts
Persons who we owe money to.
Creditors
Any loan that is repayable in 12 months.
Current liability
Partnership
Capital= $300; Assets = $500. Solve for liabilities.
$200
These are measured by order of liquidity.
Current assets
Persons that owe us money.
Debtors
These are things what we pay for the continued operations of the company.
Liabilities
Barbers fall under this business structure.
Sole-proprietor
Bought machinery for $4,000 cash at bank. Which account is credited?
Bank
Another name for capital.
Equity
Fixed assets are measured by order of.
Permanence
When liabilities increase we record on which side?
Credit
These companies do not go into business to earn a profit.
Non-profit
K. Simms lent us $600 cash. Which account is to be debited?
Cash
This element encompasses proper record keeping of transactions.
Book-keeping
Cable Bahamas is an example of this type of business structure.
Limited Company
When assets decrease we record on what side?
Credit
You are only liable to what you invested into the company.
Limited liability
Pledged $1,000 for the start-up of the firm. Which account is to be credited?
Capital