Key terms: Chapter 10 Flashcards
1
Q
Accounting Equation?
A
A(ssets) - L(iabilities) = C(apital)
2
Q
Assets?
A
Items owned by the business
3
Q
Liabilities?
A
Amounts owed by the business
4
Q
Capital?
A
Money invested in the business by the owner
5
Q
Capital Expenditure?
A
Expenditure incurred on the
- Purchase
- Alteration
- Improvement
Of non-current assets.
6
Q
Revenue Expenditure?
A
Expenditure incurred on purchases made by the business and on running expenses.
7
Q
Capital Income?
A
Income received from non-regular transactions.
8
Q
Revenue income?
A
Income received from sales made by the business and other regular amounts of income.
