Definition Flashcards
What does Revenue mean?
Money the business earns through its operation
What does Expense mean?
Money the business has to pay in order to operate
What is the definition of Asset?
Assets are items of value owned by the business or person
What is the definition of Liability?
amounts owed by the business to other people or enterprises.
What is the definition of Owner’s Equity?
the value of the owner’s contribution to the business
Define the Term ‘Accounting’
Accounting is the formal process of; Identifying, Interpreting, Recording, Communicating, Measuring and organizing financial information
What are accounts?
Are individual records showing all increases and decreases in the financial value of each item in the business
E.g. Wages, electricity, bank account, furniture
