Accounting /POA Sec 3 Chap 3 Quiz
POA Sec 3 Chap 3 Quiz
This deck covers key concepts from Chapter 3 of POA Sec 3, focusing on fundamental accounting terms and principles.
What is an Asset?
Answer: Resources owned or controlled by the business to carry out its activities
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Key Terms
Term
Definition
What is an Asset?
Answer: Resources owned or controlled by the business to carry out its activities
What is an Equity?
Answer: Amount contributed by the owner and profit made by the business
What is an Expense?
Answer: Incurred by business to generate income
What is an Income?
Answer: Amount earned from mainly selling goods or providing services
What is a Liability?
Answer: Amount owned or controlled by the business to carry out its activities
Explain the difference between inventory and no current assets?
Answer: Inventory are goods purchased with the intention of resale non current assets are purchased with the intention to be used in the business to g...
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Term | Definition |
---|---|
What is an Asset? | Answer: Resources owned or controlled by the business to carry out its activities |
What is an Equity? | Answer: Amount contributed by the owner and profit made by the business |
What is an Expense? | Answer: Incurred by business to generate income |
What is an Income? | Answer: Amount earned from mainly selling goods or providing services |
What is a Liability? | Answer: Amount owned or controlled by the business to carry out its activities |
Explain the difference between inventory and no current assets? | Answer: Inventory are goods purchased with the intention of resale non current assets are purchased with the intention to be used in the business to generate income |
Explain the difference between asset and expense? | Answer: Benefits obtained from assets will last longer than benefits obtained from expenses for business |
Explain the difference between liabilities and equity? | Answer: Liabilities are amounts owed by the business to other businesses or people Equity is the amount contributed by the owners and profit generated by the business |
State the accounting equation? | Answer: Total assets = Total liability + Total equity |