Definitions

Question 1

Assets

Answer 1

ASSETS:Somethingabusinessownsandcontrols,from which economic benefit is expected to arise.

Question 2

NON-CURRENT ASSETS:

Answer 2

NON-CURRENT ASSETS: long-term assets that the business expects to hold for more than onefinancial yearand cannot beeasily converted to cash. They have a useful life of more than one year.

Question 3

TANGIBLE ASSETS:

Answer 3

TANGIBLE ASSETS: long-term assets that have a physical form. Examples: property, equipment, vehicles.

Question 4

CURRENT ASSETS:

Answer 4

assets that are expected to be converted to cash within one financial year.

Question 5

OWNER’S EQUITY:

Answer 5

OWNER’S EQUITY: the owner’s interest or share of the assets in the business. The value of the owner’s equity is affected by capital, drawings, incomes and expenses.

Question 6

INCOMES:

Answer 6

INCOMES: money that is earned from providing a service, from investments or from trading.

Question 7

EXPENSES

Answer 7

: a cost incurred by the business in order to conduct its operational activities.

Question 8

LIABILITIES

Answer 8

LIABILITIES: money/ debts owed by the business to another business or individual.

Question 9

NON-CURRENT LIABILITIES

Answer 9

NON-CURRENT LIABILITIES: liabilities that are not due for payment within one financial year.
CURRENT LIABILITIES: liabilities that are due for payment within one financial year.

Question 10

NEGATIVE ASSETS/ PROVISION ACCOUNTS:

Answer 10

NEGATIVE ASSETS/ PROVISION ACCOUNTS: that portion of a tangible asset that has used up OR future expected loss in value of an asset. These decrease the value of assets.

Question 11

CURRENT LIABILITIES:

Answer 11

CURRENT LIABILITIES: liabilities that are due for payment within one financial year.