Test Preparation

Question 1

Define book keeping.

Answer 1

This is the process of recording your company’s financial transactions into organized accounts.

Question 2

What are liabilities?

Answer 2

A liability is a debt. It is money owed to a person or seller.

Question 3

Mention 2 types of liabilities

Answer 3

Short term liabilities
Long term liabilities

Question 4

Examples of short term liabilities.( also known as current liabilities.)

Answer 4

A bank , overdraft and creditors. (Accounts payable.)

Question 5

Examples of long term liabilities?

Answer 5

Mortage, Loan, Vehicles.

Question 6

What are short term liabilities?

Answer 6

This is a financial obligation to be paid within a year.

Question 7

What is a long term liability?

Answer 7

A financial obligation that is due more than a year in the future.

Question 8

What is an asset?

Answer 8

An asset is an accounting term used for valuable possessions.

Question 9

What are the types of assets?

Answer 9

Non current and current

Question 10

What is a non current asset?

Answer 10

These are assets expected to be used for more than one accounting period. (Tangible.)

Question 11

What is a current asset?

Answer 11

These are possessions that will change during the year. Or assets that are changed into cash within a year.

Question 12

What is an expense?

Answer 12

This is a cost that businesses incur in running operations.

Question 13

What is revenue?

Answer 13

This is income made by the businesses activities.

Question 14

What are wages?

Answer 14

An amount of money paid to an employee for each hour work.

Question 15

What are the types of wages you know.

Answer 15

Living wages , minimum wages, fair wages.

Question 16

What is an enquiry letter?

Answer 16

This is a letter written to enquire certain information you would like to know.

Question 17

Define the term office etiquettes.

Answer 17

This is a set of written rules for employees to practice professionalism and polite behavior.

Question 18

State 3 reasons why office etiquette is important.

Answer 18

It creates a professional and mature environment.

It improves communication which serves the office to be a productive place.

It establishes respect.

Question 19

Examples of office etiquettes

Answer 19

Knock before you enter.
Don’t be late.
Dress appropriately.
Be friendly to new employees.

Question 20

Outline any 5 job opportunities in an office.

Answer 20

Account Manager
Office manager
Mail clerk
Administrative assistant
Reception

Question 21

What is an office?

Answer 21

An office is a building where duties and productive work is done.

Question 22

Disadvantages of a virtual office.

Answer 22

Technological issues
Less interaction
Team building rarely takes place

Question 23

What is a cash book?

Answer 23

A financial journal that contains all cash receipts and disbursements.

Question 24

What is owners equaty?

Answer 24

This is the owners total investments in a buisness.

Question 25

What is capital?

Answer 25

This are the money and assets a person needs to start a buisness.

Question 26

What is a bank transaction?

Answer 26

This is the buying of goods and services on chèque.

Question 27

What is a transaction?

Answer 27

A transaction is the exchange of goods and services for cash. Or goods for goods.

Question 28

Give two reasons why an individual would want to pay on credit?

Answer 28

1. An individual may not have access to the cash at that particular moment.
2. An individual may want to use that starter money to begin a buisness and proceed to pay later.

Question 29

What is a credit transaction?

Answer 29

This is when you decide to pay at a much later date.

Question 30

What is the main document for a bank transaction

Answer 30

A cheque

Question 31

What is batar transaction?

Answer 31

The exchange of goods for goods.

Question 32

What is a cash transaction?

Answer 32

This is when you pay the money directly and immediately.