1
Q
What is the purpose of “recording transactions”?
A
- Keeps a record of money coming in and out of the business.
2
Q
What is the purpose of “management of the business”?
A
- Helps managers to plan future spending and budgets.
3
Q
What is the Purpose of “Compliance”?
A
- Makes sure that the business follows taxes and laws.
4
Q
What is the purpose of “measuring performance”?
A
- Shows if the business is making a profit or loss.
5
Q
What is the Purpose of “Control”?
A
- Helps managers to trade payables.
6
Q
What are Loans?
A
- Loans are usually from banks.
7
Q
What are mortgages?
A
- Loans to buy property.
8
Q
What are shares?
A
- They receive dividends.
9
Q
What is owner’s capital?
A
- Owners’ funds.
10
Q
What are debentures?
A
- Help secure income.
11
Q
What are Cash Sales?
A
- Money received immediately from selling goods and services.
12
Q
What are credit sales?
A
- Money received later for selling goods and services.
13
Q
What is the rent received?
A
- Income received from renting properties.
14
Q
What is the commission received?
A
- Money earned from selling others’ products and services.
15
Q
What is the interest received?
A
- Money received from saving and lending to others.
16
Q
What is the discount received?
A
- Money received from discounts of products.
17
Q
What is capital expenditure?
A
- Money spent to buy (noncurrent) assets used for lots of years.
18
Q
What are tangible assets?
A
- Tangible assets are **physical.
19
Q
Name an example of a tangible asset.
A
- Buildings.
20
Q
What are intangible assets?
A
- Intangible assets are nonphysical.
21
Q
Name an example of intangible assets.
A
- trademarks
22
Q
What is revenue expenditure?
A
- Day-to-day running costs of the business.
23
Q
What is inventory?
A
- Goods bought for resale.
24
Q
What is rent?
A
- Cost of property.
Jane Unit 3
flashcards
Decks in class (8)
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