ems

Question 1

Name the 5 capitals and give an example

Answer 1

fixed capital
financial capital
working capital 
share capital
stat-up capital

Question 2

assets are items owned by?…

Answer 2

business

Question 3

explain quickly what a non-current asset and a current asset is

Answer 3

n.c- cant be converted into cash within a year eg; land vehicles
c- can be converted into cash within the next accounting period eg; stock, debtors

Question 4

explain quickly what a non-current liability and a current liability is

Answer 4

n. c.l- long term costs;mortgage, loan repayments

c. l- short term loan from a bank when you run out of cash

Question 5

the higher ur expenses the better profit

Answer 5

false, the more loss

Question 6

fixed expenses get paid every month give examples

Answer 6

rent, interest on the loan, tools, furniture, salaries

Question 7

calculate in. R4500 ex. R6000

Answer 7

loss of R1500

Question 8

a budget is a …

Answer 8

written plan to show everything you have paid for

Question 9

name the 2 transactions and explain

Answer 9

cash transaction- cash payments or cash receipts

credit transaction-credit purchases or credit sales

Question 10

name the four things that need to be included on the transaction

Answer 10

date, parties involved, amount, the reason for the transaction

Question 11

personal income examples

Answer 11

salary, pocket money, lotto, money as a gift, doing odd jobs

Question 12

name the two types of personal income and explain

Answer 12

fixed-income- salary or wages

variable income- odd money.eg; money as a gift

Question 13

a fixed deposit savings account is a?

Answer 13

when you close your account for a certain amount of time to save money

Question 14

net worth explain

Answer 14

what the cost is of everything you own - your total liabilities

Question 15

give eg; of asset and liability net worth

Answer 15

asset - bicycle

liability- library fine