Test Preparation Flashcards
Define book keeping.
This is the process of recording your company’s financial transactions into organized accounts.
What are liabilities?
A liability is a debt. It is money owed to a person or seller.
Mention 2 types of liabilities
Short term liabilities
Long term liabilities
Examples of short term liabilities.( also known as current liabilities.)
A bank , overdraft and creditors. (Accounts payable.)
Examples of long term liabilities?
Mortage, Loan, Vehicles.
What are short term liabilities?
This is a financial obligation to be paid within a year.
What is a long term liability?
A financial obligation that is due more than a year in the future.
What is an asset?
An asset is an accounting term used for valuable possessions.
What are the types of assets?
Non current and current
What is a non current asset?
These are assets expected to be used for more than one accounting period. (Tangible.)
What is a current asset?
These are possessions that will change during the year. Or assets that are changed into cash within a year.
What is an expense?
This is a cost that businesses incur in running operations.
What is revenue?
This is income made by the businesses activities.
What are wages?
An amount of money paid to an employee for each hour work.
What are the types of wages you know.
Living wages , minimum wages, fair wages.
What is an enquiry letter?
This is a letter written to enquire certain information you would like to know.
Define the term office etiquettes.
This is a set of written rules for employees to practice professionalism and polite behavior.
State 3 reasons why office etiquette is important.
It creates a professional and mature environment.
It improves communication which serves the office to be a productive place.
It establishes respect.
Examples of office etiquettes
Knock before you enter.
Don’t be late.
Dress appropriately.
Be friendly to new employees.
Outline any 5 job opportunities in an office.
Account Manager
Office manager
Mail clerk
Administrative assistant
Reception
What is an office?
An office is a building where duties and productive work is done.
Disadvantages of a virtual office.
Technological issues
Less interaction
Team building rarely takes place
What is a cash book?
A financial journal that contains all cash receipts and disbursements.
What is owners equaty?
This is the owners total investments in a buisness.
What is capital?
This are the money and assets a person needs to start a buisness.
What is a bank transaction?
This is the buying of goods and services on chèque.
What is a transaction?
A transaction is the exchange of goods and services for cash. Or goods for goods.
Give two reasons why an individual would want to pay on credit?
- An individual may not have access to the cash at that particular moment.
- An individual may want to use that starter money to begin a buisness and proceed to pay later.
What is a credit transaction?
This is when you decide to pay at a much later date.
What is the main document for a bank transaction
A cheque
What is batar transaction?
The exchange of goods for goods.
What is a cash transaction?
This is when you pay the money directly and immediately.
