Acounting

Question 1

Accounting

Answer 1

System that stores/provides information about a businesses finances. Keeps proper records of all financial activities

Question 2

Capital

Answer 2

Money or possessions that the owner puts into start a business

Question 3

Assets

Answer 3

All possessions of the business including vehicles, machinery, equipment, trading stock, cash and debtors.
Have lasting value

Question 4

Liabilities

Answer 4

Money the business owes to other people/businesses

Question 5

Income

Answer 5

Money business/person earns or gets

Question 6

Expenses

Answer 6

Money spent by businesses as a result of running the business

Question 7

Profit

Answer 7

The difference between income and expenses when income is more than expenses

Question 8

Loss

Answer 8

The difference between income and expenses when expenses are more than income

Question 9

Budget

Answer 9

Written or recorded plan on how to spend Future income

Question 10

Banking

Answer 10

An organisation that runs financial offering where people can store or manage their money

Question 11

Savings

Answer 11

The act of putting money aside for future use and not spending all income and at once

Question 12

Transactions

Answer 12

Financial action/event that takes place in the business between two parties

Question 13

Financial records

Answer 13

Daily recording of financial transactions in the accounting system of businesses