FUN PACK 5

Question 1

Define non-current assets

Answer 1

Resources which benefit the business current and future periods.

Question 2

Define non-current liabilities

Answer 2

Obligations where the repayments are due only after the next twelve months.

Question 3

Define trial balance

Answer 3

Listing of ledger balances on a particular date.

Question 4

Define balance sheet

Answer 4

A financial statement showing the financial status of a business on a particular date. It shows the assets, liabilities and equity.

Question 5

Define drawings

Answer 5

Withdrawals of business resources by the owner for personal or private use.

Question 6

Define banker’s instruction / standing instruction

Answer 6

A service by the bank to make regular payments on behalf of the bank account holder.

Question 7

Define direct credit

Answer 7

A direct receipt of cash paid into the bank account by business receivables.

Question 8

Define bank overdraft

Answer 8

A facility given by the bank to allow bank customer to draw out in excess of their deposits / savings.

Question 9

Define net realisable value

Answer 9

Estimated selling price of inventory after accounting for additional cost to make the inventory saleable.

Question 10

Define accounting

Answer 10

Accounting is the process of recording, summarising, reporting, analysing and interpreting of financial information of an organisation.