Differentiate between: 1. An asset account and liability account 2. An expense account and revenue account 3. A trial balance and a balance sheet

Differentiate between:
1. An asset account and liability account
2. An expense account and revenue account
3. A trial balance and a balance sheet

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1. An asset account - An account having a resource of a business. E.g. motor vehicle accounts, debtor account.
2. An expense account- An account having what the business has incurred when running business e.g salary account, electricity account
-Revenue account – An account having an income to the business. E.g. p&l account, discount received account.
3. Trial balance- This is a list of debit and credit balance of a business for particular date.
Has a column, title of accounts, the debit column and credit column.
- Balance sheet- A statement showing the assets and liabilities of a business at a particular date.
Also called, statement of financial position.

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Wilfykil answered the question on February 27, 2019 at 13:51

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