C) The Purpose Of Accounting Flashcards
1
Q
Capital income
A
The money invested by owners or investors to set up a business or buy additional equipment
2
Q
Revenue income
A
The money that comes into a business from performing its day-to-day function (selling goods/providing a service)
3
Q
Capital expenditure
A
Used to buy capital items, which are assets that will stay in the business for a long time
4
Q
Revenue expenditure
A
Spending on items on a day-to-day basis.
5
Q
Fixed assets (non-current assets)
A
Items of value that are likely to stay in the business for more than 1 year
6
Q
Asset
A
Any item of value owned by a individual or firm
7
Q
Trade receivables
A
Money owed to the business from sales made but not yet paid for
8
Q
Trade payable
A
Money the business owes from supplies purchased but not yet paid for
