Types of business and Assets Flashcards
What is a service business?
provides services to its customers
E.g. Bank
What is a trading business?
buys from suppliers and sells goods to customers
E.g. Supermarket
What is Assets?
Resources a business OWNS or controls that are expected to provide future benefits.
E.g Inventory
What is office equipment?
electronic appliances used in office
E.g computers
What is motor vehicles?
vehicles for business use
E.g. vans
What is fixtures and fittings?
furnitures and items that are attached to the building by nail or screw for business use
E.g. tables
What is machinery?
heavy-duty electronic appliances used to complete complex tasks
E.g. drills
What is permises/property?
buildings and land owned and used by the business
What is cash at bank?
cash deposit into the bank
What is cash in hand?
physically cash kept by the business
What is inventory?
goods bought by the business to sell to its customers
What is trade receivables/debtors?
revenue earned but not yet collected from credit customers.
What is supplies?
items used by employees to provide service to its customers
What is income receivables?
income earned but not yet collected from credit customers
What is prepaid expense?
expenses not incurred but paid in advance
