chapter 1 - intro to accounting

Question 1

definition of:

book-keeping

Answer 1

detailed recording of all the financial transactions of a business

Question 2

definition of:

accounting

Answer 2

using book-keeping records to prepare financial statements and to assist in decision making

Question 3

definition of:

statement of financial position

Answer 3

shows the assets and liabilities of a business on a certain date

Question 4

definition of:

capital

Answer 4

total resources provided by the owner and represents what the business owes the owner

Question 5

definition of:

assets

Answer 5

represent anything owed by or owing to the business

Question 6

definition of:

liabilities

Answer 6

represent anything owed by the business

Question 7

definition of:

inventory

Answer 7

the goods a business has available for resale

Question 8

definition of:

trade payables

Answer 8

represent the amount the business owes to credit suppliers of goods

Question 9

definition of:

trade receivable

Answer 9

represent the amount owed to the business by its credit customers