unit 3 topic 12

Question 1

fixed assets

Answer 1

long term tangible property or piece of equipment that a company owns and uses in its operations to generate income

Question 2

capital income

Answer 2

money invested by the owners or other investors - used to set up the business or buy additional equipment

Question 3

loans

Answer 3

sum of money - one or more individuals borrow from banks or other financial institutions

Question 4

mortgages

Answer 4

long term loans - secured against a specific asset such as a building

Question 5

asset

Answer 5

current or future economic value to a business

Question 6

owners capital

Answer 6

money used by business owner to start up a business

Question 7

debentures

Answer 7

marketable security - businesses can issue to obtain long term financing without needing to put up collateral or dilute their equity

Question 8

revenue income

Answer 8

money that comes into a business from selling goods and services

Question 9

sales

Answer 9

companies revenue earned from sales of goods and services

Question 10

rent recieved

Answer 10

pre agreed amount of money received by a landlord from tenants

Question 11

commission received

Answer 11

business receives an extra amount from any person for any services rendered which benefitted the business

Question 12

interest received

Answer 12

interest that has been earned by investments, loans or overdue invoices

Question 13

discount received

Answer 13

reduction in cost that a buyer receives from a seller