WAEC Accounting 2014 Theory — Question 4

Model answer

Assets: These can be defined as all resources or properties owned by a business that have material value and a lifespan of more than a year. Classifications: (i) Fixed assets; (ii) Current assets; (iii) Fictitious assets. Liabilities: These can be defined as all financial obligations that are a claim against the assets of the business. Classifications: (i) Long-term liabilities; (ii) Current liabilities.