Accounting Basics

Question 0

Inventory

Answer 0

refers to the goods and materials that a business holds for the ultimate purpose of resale (or repair).

Question 1

Interest

Answer 1

a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets.

Question 2

Capitalize

Answer 2

F

Question 3

Asset

Answer 3

Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.

Question 4

Liabilities

Answer 4

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

Question 5

Equity

Answer 5

the residual value or interest of the most junior class of investors in assets,

Question 6

Net Income

Answer 6

entity’s income minus cost of goods sold, expenses and taxes for an accounting period.

Question 7

Net Sales

Answer 7

Are operating revenues earned by a company for selling its products or rendering its services

Sales - returns - discounts = Net Sales

Question 8

Tax

Answer 8

H

Question 9

Valuation

Answer 9

Td

Question 10

Principle

Answer 10

A debt generally refers to money owed by one party, the debtor, to a second party, the creditor.