Account Name

Question 1

Accounts

Answer 1

Financial records, where business transactions are entered

Question 2

Assets

Answer 2

Item owned by a business

Question 3

Liabilities

Answer 3

Item owed by a business

Question 4

Capital

Answer 4

The amount of the owner’s stake in the business

Question 5

Purchases

Answer 5

goods bought- whether on credit or for cash - which are intended to be a resold later

Question 6

Credit purchases

Answer 6

good bought which payment to be made at a later date

Question 7

Cash purchases

Answer 7

Good bought with immediate payment made in cash, by cheque, by debit card, by credit card, or by bank transfer

Question 8

Sales

Answer 8

the sale of goods – whether on credit or for cash – in which the business trades

Question 9

Credit sales

Answer 9

goods sold, with payment to be received at an agreed date in the future

Question 10

Cash sales

Answer 10

good sold, with immediate payment received in cash, by cheque, by debit card, by credit card, or by bank transfer

Question 11

Trade receivables

Answer 11

individuals or businesses who owe money in respect of goods or services supplied by the business

Question 12

Trade payables

Answer 12

individuals or businesses whom money is owed by the business.

Question 13

Revenue

Answer 13

the total of sales, both cash and credit, for a particular time period

Question 14

Sales returns

Answer 14

good returned by customers, also known as return inwards

Question 15

Purchases return

Answer 15

goods returned by the business to suppliers; also known as returns outwards.