Terminology

Question 1

cash sales

Answer 1

paid for immediately

Question 2

credit sales

Answer 2

payment is made at a later date

Question 3

purchases

Answer 3

only items the business intends to sell as part of it’s trade

Question 4

cash purchases

Answer 4

paid for at the time of the purchase

Question 5

creditors

Answer 5

credit supplier

Question 6

trade payables

Answer 6

credit supplier

Question 7

cash book

Answer 7

money going in and out of the business

Question 8

petty cash

Answer 8

small stuff such as tea, stamps

Question 9

assets

Answer 9

premises, fixtures, fittings, vehicles

Question 10

inventory

Answer 10

stock to sell to customers

Question 11

bank

Answer 11

money in the bank - as long as it’s not over drawn

Question 12

cash

Answer 12

money held on the premises

Question 13

trade receivables

Answer 13

money owed to you by credit customers

Question 14

liabilites

Answer 14

something a business owes in the course of trade

Question 15

payables

Answer 15

to credit suppliers

Question 16

income

Answer 16

money received through selling goods + services

Question 17

expenditure

Answer 17

opposite of income, money paid for goods + services. 1. cost of sales. 2. expenses

Question 18

profit

Answer 18

if income exceeds expenditure

Question 19

drawings

Answer 19

money taken out by owner

Question 20

loss

Answer 20

expenditure exceeds income

Question 21

sales day book

Answer 21

where sales are recorded on a daily basis

Question 22

receivables

Answer 22

amounts owed to a business, regarded as assets.

Question 23

credit purchases

Answer 23

when a business pays for a goods or services some time after making the purchase