C: Understand the purpose of accounting Flashcards
1
Q
What is the purpose of accounting? (5)
A
- Record transactions
- Management of the business
- Compliance
- Measuring performance
- Control
2
Q
What are the types of capital income? (5)
A
- Loans
- Mortgages
- Shares
- Owner’s capital
- Debentures
3
Q
What are the types of revenue income? (5)
A
- Sales
- Rent received
- Commission received
- Interest received
- Discount received
4
Q
What are the types of capital expenditure? (2)
A
- Non-current assets
- Intangibles
5
Q
What are the intangibles that exist within businesses? (4)
A
- Goodwill
- Patents
- Trademarks
- Brand name
6
Q
What are the types of revenue expenditure? (14)
A
- Inventory
- Rent
- Rates
- Heating and lighting
- Water
- Insurance
- Administration
- Salaries
- Wages
- Marketing
- Bank charges
- Interest paid
- Depreciation
- Discount allowed
