Revenue
What does Revenue Mean?
Money earned from selling goods or services
What are Expenses?
Costs a business pays to operate
What is an Asset?
Something a business owns that has value
What is a Liability?
Money a business owes to others
What is Owners Equity?
The owners financial interest in the business
Which of these is revenue? Sales Income or Electricity Expense ?
Sales Revenue
Is Rent and expense or an asset?
Expense
Is cash an asset?
Yes
Is a bank loan an asset or aliability?
Liability
Which is Owners Equity: Capital or Electricity Expense?
Capital
A Cafe earns money selling coffee, which REALOE category is this?
Revenue
Which REALOE category does wages belong to?
Expense
A business owns computers and furniture, what REALOE category are these in?
Assets
Which REALOE category does a bank overdraft belong in?
Liabilities
When an owner invests money into a business, which Category of REALOPE is effected?
Owners Equity
Give an Example of a Revenue Account
Sales, Services Income, fees Earned, Commissions, Rent Received
Give an example of an expense
Rent, Wages, electricity, advertising, purchase of goods
Give an example of an asset
Cash, Inventory, accounts receivable, buildings, furniture
Give an example of a liability
Loan, Overdraft, credit card debt
What happens to Owners Equity when profits increase?
It increases
Does Revenue Increase or Decrease Owners Equity
Increase
Do expenses increase or decrease profit?
Decrease
Does an increase in Assets increase or decrease Owners Equity?
Yes
Does an increase Liabilities increase or decrease Owners Equity?
Decrease
Name an account that belongs to Owners Equity
Capital, Drawings