Accounting

Question 1

Balance sheet

Answer 1

Shows the value of the business for the owner. (Assest & liability)

Question 2

Asset

Answer 2

something that we own

Question 3

Administrative expenses

Answer 3

Expenses incurred by the business in order to run the business

Question 4

3 types of expenses

Answer 4

Administrative, Financial, Distribution

Question 5

Distribution expenses

Answer 5

The expenses directly related to selling your inventory (goods) or delivering your service

Question 6

Financial expenses

Answer 6

The expenses directly related to financing your business with
borrowed money – Interest on loans, mortgages, bank overdraft interest.
(only interest apparently)

Question 7

Income statement

Answer 7

Used to calculate the net profit of the business for the accounting period.
Usually month or year
Revenue - all 3 expenses

Question 8

Owner Equity

Answer 8

The value of the business investment to the owner
Assets - Liabilities = Owners Equity

Question 9

Liabilities

Answer 9

What amounts are owed to other people

Question 10

Credit

Answer 10

Money that you borrow from the bank or any other loans. (L + OE)

Question 11

Debit

Answer 11

Money that is in your account and owned by the business. (Asset)

Question 12

Account payable

Answer 12

Money a business needs to pay to its suppliers.

Question 13

Accounts Receivable

Answer 13

Money your customers owe you for a service or product.

Question 14

Extended Accounting Equation

Answer 14

Assets + Expenses + Drawings = Liabilities + Owners Equity +Income