Multiple Choice
The amount of money paid into a company by its owners is referred to as:
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1. Introduction to Accounting
Types of Accounting
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Which of the following terms refers to anything you own that has value in accounting?
A
Liability
B
Equity
C
Revenue
D
Asset
Verified step by step guidance1
Step 1: Understand the concept of 'Asset' in accounting. An asset is anything owned by an individual or entity that has value and can be used to generate future economic benefits. Examples include cash, inventory, property, and equipment.
Step 2: Differentiate between the given terms: Liability, Equity, Revenue, and Asset. Liability refers to obligations or debts owed to others. Equity represents the owner's interest in the business. Revenue is the income generated from business operations. Asset, as mentioned earlier, is something of value owned by the entity.
Step 3: Recognize that the question is asking for the term that refers to 'anything you own that has value.' Based on the definitions, the term 'Asset' fits this description.
Step 4: Confirm your understanding by reviewing examples of assets, such as accounts receivable, buildings, and machinery, which are owned and have measurable value.
Step 5: Conclude that the correct answer to the question is 'Asset,' as it aligns with the definition provided in accounting.
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