The Accounting Process

• PART-A
• Brief Questions
• 1st Part

1.Double Entry System is a
Ans:Recording System.

2.What is a Assets?
 Ans:Resources owned by a business.

3.What is Liabilities?
Ans:Creditors and owner's claims on total assets.

4.What do you mean by Drawings?
Ans: Withdrawal of cash or other assets from business for the personal use of the owners.

5.What is Balance Sheet?
Ans:A financial statement that reports the assets,liabilities,and owner's equity at a specific date.

6.What do you mean by economic entity assumption ?
Ans:An assumption that requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities.

7.What is Expenses ?
Ans:The cost of assets consumed or services used in the process of earning revenue.

8.What is Income statement ?
Ans: A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.