Accounting chapter 2

Question 1

Define double entry book-keeping

Answer 1

The process of making a debit entry and a credit entry for each transaction

Question 2

Define ledger

Answer 2

A ledger is where the recordings of account are done using debit and credit in the double entry concept

Question 3

Define Expense

Answer 3

The amount spent by a business to ensure business are able to operate in a usual manner

Question 4

Define Revenue

Answer 4

Revenue is the amount earned by a business after providing good and services

Question 5

Define Drawing

Answer 5

Drawings represent any value taken from the business by the owner of that business

Question 6

Define sales return

Answer 6

When the goods that the customer received is damaged/broken and they return it back to the business

Question 7

Define purchase return

Answer 7

When the goods that the business received is damaged/broken and will be returned back to the supplier

Question 8

Define carriage inwards

Answer 8

The cost of bringing goods into the business and is an expense

Question 9

Define carriage outwards

Answer 9

The cost of delivering the goods to the costumers and is an expense