Accounting

Question 1

What is a transaction?

Answer 1

Actions involving money either going in or out of a business.

Question 2

What is accounting?

Answer 2

The recording of financial transactions.

Question 3

Accounting is used to spot unusual activity, helping to prevent fraud.

Fraud is when company money is used inappropriately by the wrong person for _____________.

Answer 3

personal gain

Question 4

What are the key indicators of financial performance:
1.
2.
3.
4.

Answer 4

1. Gross profit.
2. Net profit.
3. Value owed to the business.
4. Value owed by the business.

Question 5

What is gross profit?

Answer 5

The amount of profit left after production costs.

Question 6

What is net profit?
A smaller amount of profit left after ____________________________ (e.g. advertising).

Answer 6

all other business expenses

Question 7

What is the valued owed to a business?

Answer 7

Money owed from sales that have not yet been paid for.

Question 8

What is valued owed by a business?

Answer 8

Money owed for goods/services purchased but not yet paid for by a business.

Question 9

Trade receivables is _____________________ from _________ made but not yet paid for.

Answer 9

money owed to the business
sales

Question 10

Trade payables is money the ____________________ from _______________________ but not yet paid for.

Answer 10

business owes
supplies purchased