[amp_mcq option1=”Liabilities – Capital” option2=”Cash + Capital” option3=”Liabilities + Capital” option4=”Capital – Drawings” correct=”option2″]<\/p>\n
The correct answer is: B. Cash + Capital<\/strong><\/p>\n Assets are the resources that a company owns and uses to generate revenue. They can be tangible, such as equipment or inventory, or intangible, such as patents or trademarks.<\/p>\n Cash is the most liquid asset, meaning that it can be easily converted into cash. Capital is the owner’s equity in the business. It is the difference between the assets and liabilities of the business.<\/p>\n Liabilities are the debts that a company owes. They can be short-term, such as accounts payable, or long-term, such as loans.<\/p>\n Drawings are the amounts that the owner takes out of the business for personal use. They are not considered assets of the business.<\/p>\n Here is a more detailed explanation of each option:<\/p>\n [amp_mcq option1=”Liabilities – Capital” option2=”Cash + Capital” option3=”Liabilities + Capital” option4=”Capital – Drawings” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-49582","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n