1What are the 5 elements of financial statements?
Assets, Liabilities, Equity, Income & Expense
2Define assets
Resources a business owns or controls that are expected to provide future benefits
3Define liabilities
Obligations owed by a business to others that are expected to be settled in the future
4Define Equity
Claim by the owner(s) on the net assets of a business
5Define Income
Amounts earned through the activities of a business
6Define Expense
Cost incurred in the operation of a business to earn income in the same accounting period
7What are the components of equity?
Capital, Drawings and Profit or Loss for the period
8What is Capital?
Resources contributed by the owner
9What is Drawings
Assets / resources taken from the business for the owner's personal use
10What is the equation to calculate owner's equity
Capital + Profit (or - Loss) - Drawings
11Is stationery an asset or expense
Expense
12What is the basic accounting equation
Assets = Liabilities + Equity
13What is the expanded accounting equation
Assets = Liabilities + [Capital + (Income - Expenses) - Drawings]
14Each transaction always affects a minimum of?
2 accounts
15What is TSCI
Trade Receivable and Sales Revenue ; Cost of Sales and Inventory