4.4 - Basic Accounting Terminology
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is a transaction?
💡 Hint: Think about buying or selling something.
Define an asset.
💡 Hint: What does the company own?
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is defined as a financial activity between two parties?
💡 Hint: Think about buying or selling.
True or False: Assets are resources owned by the business.
💡 Hint: Consider what a business has.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company purchases equipment worth $5,000 and pays in cash. What entries are made in the journal?
💡 Hint: Remember the flow of money - what goes in, what goes out.
A business had $20,000 in total assets and $5,000 in total liabilities. Calculate the owner's equity.
💡 Hint: Think of the accounting equation: Assets = Liabilities + Equity.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.