Question

Match the following:

• A. Liability
• B. Asset
• C. Capital
• D. Expense

Answer 1

1. Salary payable is the part of salary which is due, but not yet paid. Hence, it is a liability.
2. Amount receivable is that amount which is earned, but not yet received. Hence, it is an asset.
3. Additional capital introduced in the business will be added to capital.
4. Salaries paid is an expense to the business.