Economic Management Sciences- Owner's Equity Flashcards
1
Q
Definition
A
Money or capital invested in the business by the owner.
2
Q
Any asset can
A
Be given to the business by the owner as a form of capital.
Land and buildings, vehicles and equipment.
3
Q
Aim of business
A
Is to make a profit
4
Q
Capital and income
A
Increase
5
Q
Drawings and expenses
A
Decrease
6
Q
When debtors return goods
A
It is still an expense but it increase OE.
7
Q
Expenses
A
Rent, wages, salaries, stationery, packing material, fuel and cost of sales.
8
Q
Income
A
Sales, rent, interest on fixed deposit or favorable bank balance.
