Accounting Concepts Flashcards
1
Q
Finance
A
Money or funds
2
Q
Capital
A
What the owner puts into the business (assets,money etc.)
3
Q
Assets
A
- possessions of the business
- possessions used to run the business
4
Q
Types of Assets
A
- Land and building: property occupied by the business
- Equipment: furniture, desk etc.
- Vehicle: cars, aero planes etc.
- Money in the bank (cash)
5
Q
Liabilities
A
Debts of the business
6
Q
Types of liabilities
A
- Loan: money borrowed by financial institution (bank)
- Credit: buy now, pay later (borrow from the bank)
- Supplier: businesses that buy from other businesses
7
Q
Income
A
Money earned by the business
8
Q
Break even
A
When expenses are equal to income
Income - expenses = 0
(Profit is neither positive or negative)
9
Q
Loss
A
Expenses are greater than income
Loss = income - expenses
(negative no.)
10
Q
Interest
A
Money earned by the business that is saved in the bank to make α profit
11
Q
Current account
A
=Cheque account
An account that is designed for making transactions
12
Q
Bank statement
A
Documents prepared by the bank showing money that they have received into and paid out of the account
