Q1: Give the accounting definition of an asset. Explain whether the asset should be owned by the business to show in the balance sheet.

Q2: Give the accounting definition of a liability. Show the difference between a current liability and a non-current liability. Also give an example of each type of liability.

Q3: What is a business transaction? Explain whether you think the receipt of an order from a customer would be regarded as an accounting transaction.

Q4: Define income. What is the difference between income and revenue?

Q5: Explain why income and expenses are recorded net of GST in the income statement.