MOD 7 - accounting concepts Flashcards
1
Q
what are transactions ?
A
when money is exchanged between people
2
Q
what is a long term liability?
A
the business has more than 12 months to pay back what they owe
3
Q
what is a short term liability ?
A
the business has less than 12 months to pay back what they owe
4
Q
what is a liability ?
A
when a business borrows money and is in their debt
5
Q
what are assets ?
A
belongings of the business used to make money
6
Q
what are subsidiary journals ?
A
they are the first place that source documents are entered into
7
Q
what is the accounting equation used for ?
A
show us who the assets in the business belongs to
