Accounts

• What is accounts receivable?


  A type of account that records cash owed to the business from customers.
• What type of account is accounts receivable?


  Asset
• What is accounts payable?


  A type of account that records cash the business owes to other entities.
• What type of account is accounts payable?


  Liability
• What is an example of a non-cash expense?


  Depreciation.
• Which types of accounts appear on the balance sheet?


  Assets, Liabilities, Equity
• Which types of accounts appear on the income statement?


  Revenue, Expenses, Dividends
• What are assets?


  Physical and nonphysical things that a business has of monetary value, such as cash, inventory, and supplies.
• What are expenses?


  Costs incurred as a result of conducting business other then costs directly relating to production or providing a service.
• What are dividends?


  A distribution of earnings from a business to its shareholders.
• What is equity?


  The shareholders' or owner's claim to assets that a business has.
• What is revenue?


  Income that a business generates through the sales of goods or services that it provides.
• Which type of account are assets recorded as?


  Debit
• Which type of account are liabilities recorded as?


  Credit
• Which type of account is equity recorded as?


  Credit
• Which type of account are expenses recorded as?


  Debit
• Which type of account is revenue recorded as?


  Credit
• Which type of account are dividends recorded as?


  Debit
• What are liabilities?


  Money that the business owes to third parties.
• What are current assets?

  Assets that can be quickly converted into cash.
• What are non-current assets?

  Assets that cannot be quickly converted into cash.
• What does the term liquidity refer to?

  How quickly an asset can be converted into cash.