Economics and Finance Flashcards
1
Q
What is the purpose of the Trial Balance?
A
Ensure transactions are kept and balanced accordingly
2
Q
Management accounts are required by law? T or F
A
F- internal use, decision making planning and monitoring companies performance
3
Q
The company takes out a loan to pay for a new van. Is this a loan or an asset
A
Loan-liability
Van - asset
4
Q
Define Trade debtor and creditorl
A
5
Q
What is the difference between Gross Profit and a Gross Profit Ratio
A
6
Q
Discuss the difference between Cash and Profit
A
Cash is tangible, physical
7
Q
Double entry book keeping is a waste of time and money
A
