GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Expenditure, Revenue and Loss
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Assets, Liabilities and Capital
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Personal, Real and Nominal
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None of the above
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Detailed explanation-1: -What Are the 3 Elements of the Accounting Equation? The three elements of the accounting equation are assets, liabilities, and shareholders’ equity. The formula is straightforward: A company’s total assets are equal to its liabilities plus its shareholders’ equity.
Detailed explanation-2: -Types of Accounting Transactions based on the Exchange of Cash. Based on the exchange of cash, there are three types of accounting transactions, namely cash transactions, non-cash transactions, and credit transactions.
Detailed explanation-3: -All accounts are divided into five categories for the purposes of recording the transactions: (a) Asset (b) Liability (c) Capital (d) Expenses/Losses, and (e) Revenues/Gains. The transactions in Example 1 on page 46 will help you to learn how to apply these debit and credit rules.
Detailed explanation-4: -The balance sheet is broken into three categories and provides summations of the company’s assets, liabilities, and shareholders’ equity on a specific date.