Definitions

Question 1

ASSETS

Answer 1

Tangible or intangible valuables of a business etc.
→ Eg. Buildings, land.

Question 2

CURRENT ASSETS

Answer 2

Physical or financial items.
→ Eg. Physical cash, cash in bank

Question 3

NON-CURRENT ASSETS

Answer 3

Business property.
→ Eg. Building, Land, Vehicles, retained profits.

Question 4

CURRENT LIABILITIES

Answer 4

Short term debts paid within 12 months

Question 5

NON-CURRENT LIABILITIES

Answer 5

Long-term debts paid over 12 months

Question 6

ACCOUNT RECEIVABLE

Answer 6

Debtors that owe the business money paid at end of credit period

Question 7

STOCK/INVENTORY

Answer 7

Store items in a warehouse for sale to customers

Question 8

ACCOUNTS PAYABLE

Answer 8

Short term debts attended/funded within 12 months

Question 9

OWNER’S EQUITY

Answer 9

Amount of Owner’s money invested in the business

Question 10

CAPITAL

Answer 10

Amount of money injected into the business by its owner(s)

Question 11

RETAINED PROFITS

Answer 11

A portion of a year’s profit injected into the business

Question 12

BANK OVERDRAFT

Answer 12

Short-term facility, negotiated with the bank, allowing business owners to overdraw if necessary

Question 13

MORTGAGE

Answer 13

A secured, long term loan contract with a financial institution

Question 14

SALES REVENUE

Answer 14

Amount of money earned after selling goods and services

Question 15

TOTAL QUALITY MANAGEMENT

Answer 15

Commitment of continuous improvements by sharing responsibility amongst all members

Question 16

QUALITY CONTROL

Answer 16

Inspections for issues during production process

Question 17

QUALITY ASSURANCE

Answer 17

System used for business to achieve required standards in production and service

Question 18

QUALITY MANAGEMENT

Answer 18

Strategy used to make sure product meets customers’ expectations