VCE Accounting Unit 1 AOS 1
Asset - answer- present economic resources
- controlled by the entity
- as a result of past events
- potential to produce future economic benefit.
Difference between current and non-current assets - answer Current assets will
potentially produce economic benefit within 12 months.
Non-current assets will potentially provide economic benefit longer than 12 months
Examples of current assets - answer- Cash in bank
- Accounts receivable
- Inventory
Examples of non-current assets - answer- Machinery
- Office furniture
Accounts Receivable - answer Amounts to be received in the future due to the sale of
goods or services
(You have provided the good or service, but the person hasn't paid yet, but owes you)
liability - answerAn amount owed by a business
Examples of liabilities - answer- Overdraft
- Accounts payable
- Loans
- Mortgage (principal borrowed)
- Accrued expenses (eg. wages, utilities)
Accounts Payable - answerAmounts to be paid in the future for goods or services
already acquired
Difference between current and non-current liability - answerCurrent liabilities are
expected to be settled within 12 months
Current liabilities are expected to be settled within 12 months
Examples of current liability - answer- accounts payable
- bank overdraft
Examples of non-current liability - answer- loans (depending, some might be within 12
months)
- mortgage
Asset - answer- present economic resources
- controlled by the entity
- as a result of past events
- potential to produce future economic benefit.
Difference between current and non-current assets - answer Current assets will
potentially produce economic benefit within 12 months.
Non-current assets will potentially provide economic benefit longer than 12 months
Examples of current assets - answer- Cash in bank
- Accounts receivable
- Inventory
Examples of non-current assets - answer- Machinery
- Office furniture
Accounts Receivable - answer Amounts to be received in the future due to the sale of
goods or services
(You have provided the good or service, but the person hasn't paid yet, but owes you)
liability - answerAn amount owed by a business
Examples of liabilities - answer- Overdraft
- Accounts payable
- Loans
- Mortgage (principal borrowed)
- Accrued expenses (eg. wages, utilities)
Accounts Payable - answerAmounts to be paid in the future for goods or services
already acquired
Difference between current and non-current liability - answerCurrent liabilities are
expected to be settled within 12 months
Current liabilities are expected to be settled within 12 months
Examples of current liability - answer- accounts payable
- bank overdraft
Examples of non-current liability - answer- loans (depending, some might be within 12
months)
- mortgage
