Accounting: Year 10

Unit 1.2
Assets, liabilities and
capital
Lesson objective

1. To define the terms: Asset,

liabilities and capital

2. To identify the terms: Asset,

liabilities and capital
What are assets?

Lo 1.To define the terms: Asset, liabilities and capital

What are assets?

Lo 1.To define the terms: Asset, liabilities and capital

What are assets?

➢ Resources with a monetary value that are owned by

a business..
Examples: Cash, Bank balance, Land, Buildings,
Furniture, Inventories

Lo 1.To define the terms: Asset, liabilities and capital

What are liabilities?

Lo 1.To define the terms: Asset, liabilities and capital

What are liabilities?

Lo 1.To define the terms: Asset, liabilities and capital

What are liabilities?

➢ Amounts owed by a business to other

businesses, organization or individuals.

➢Examples: Bank loan, overdraft, trade payables,

loan from a friend.

Lo 1.To define the terms: Asset, liabilities and capital

What is capital?
• The investment made by the owner
of a business.

Lo 1.To define the terms: Asset, liabilities and capital

Practice questions: Page 7

LO 2 : To identify the terms: Asset, liabilities and capital

Check your answers
(a) Vehicle - Asset
(b) Fittings - Asset
(c) Cash at bank - Asset

(d) Bank loan - Liability

(e) Owner’s investment - Capital

(f) Inventory - Asset
(g) receivables – Asset
(h) Bank overdraft - Liability
(i) Trade payables - Liability

(j) Machinery - Asset

LO 2 : To identify the terms: Asset, liabilities and capital

Home Work - Practice
questions : 2.

LO 2 : To identify the terms: Asset, liabilities and capital