Chapter 1

Question 1

The collection, recording, storage and retrieval of financial transactions of a business

Answer 1

Book-keeping

Question 2

The process of collecting, recording, classifying, summarising, analysing, interpreting and communicating financial data in order to allow the users of accounting information to make informed judgments and decisions

Answer 2

Accounting

Question 3

Made up of an income statement and a statement of financial position

Answer 3

Financial statements

Question 4

Any aspect of a business that can be measured in terms of money

Answer 4

Financial data

Question 5

All those people or groups of people who have a special interest in a business. They may be internal or external to the business, for example prospective investors, the government, trade payables, managers

Answer 5

Interested parties

Question 6

Calculates the profit made by a business. Along with the statement of financial position, it makes up the financial statements of a business

Answer 6

Income statement

Question 7

Businesses or individuals to whom money is due for services or goods supplied to the business

Answer 7

Trade payables