Definitions of accounts

Question 1

Equipment

Answer 1

Used to produce goods in a manufacturing concern

Question 2

Fuel

Answer 2

Petrol or diesel for vehicles

Question 3

Trading inventory/stock

Answer 3

Stock the business sells

Question 4

Short-term loan

Answer 4

A loan that the business has to repay within a year

Question 5

Salaries

Answer 5

Employees are paid on a monthly basis as remuneration for work done in the business

Question 6

Morgage loan

Answer 6

A long-term loan used to buy land and buildings

Question 7

Water and electricity

Answer 7

A monthly expense paid to the municipality for the use of water and power

Question 8

Cash flout/petty cash

Answer 8

When the business has to pay a small amount and it is not worth it to do an internet transfer or money is taken

Question 9

Vehicles

Answer 9

EX. Ship, Truck, Plane , Train , Vehicles

Question 10

Current income

Answer 10

Income for services rendered

Question 11

Insurance

Answer 11

Monthly payment to protect assets from harm

Question 12

Cash flout

Answer 12

Change in the cash register

Question 13

Debtors

Answer 13

Customers who owe a business money

Question 14

Drawings

Answer 14

Money or goods that an owner takes out of the business for personal use

Question 15

Sales

Answer 15

Trading inventory that is sold for cash or on credit

Question 16

Bank overdraft

Answer 16

The business spends more money than what is available in the bank account