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What is the accounting equation?
A = C + L (1)
B = C + C (2)
Z= A + B (3)
What does the accounting equation stand for?
Assets = Cost + Liabilities (1)
Assets = Capital + Liabilities (2)
Assets = Capital + Long term costs (3)
A credit is something that goes out of your bank account?
A debit is money that is coming into your account?
True
False
What is the meaning of an asset?
Money that is owed to the business or something that is the business (1)
Money that is owed from your business (2)
A customers shoe (3)
What is the meaning of a liability?
Something that you owe like a mortgage (1)
Something you want to buy (2)
Something you hired (3)
What is the meaning of capital?
Money invested in a business to generate income? (1)
Your income (2)
The amount of profit you make (3)
