9 - The Purpose Of Accounting Flashcards
(33 cards)
What are the 5 reasons accounting is important to business success?
Records transactions Manages the business Compliance Measuring performance Control
What are the 2 categories of income?
Capital income
Revenue income
What are the 2 categories of expenditure?
Capital expenditure
Revenue expenditure
What type of income is a loan?
Capital income
What type of income is a mortgage?
Capital income
What type of income is a share?
Capital income
What type of income is owner’s capital?
Capital income
What type of income is a debenture?
Capital income
What type of income are cash/credit sales?
Revenue income
What type of income is rent received?
Revenue income
What type of income is commission received?
Revenue income
What type of income is interest received?
Revenue income
What type of income is discount received?
Revenue income
What type of expenditure is land?
Capital expenditure
What type of expenditure are premises?
Capital expenditure
What type of expenditure is equipment?
Capital expenditure
What type of expenditure are vehicles?
Capital expenditure
What type of expenditure is inventory?
Revenue expenditure
What type of expenditure is rent?
Revenue expenditure
What type of expenditure are rates?
Revenue expenditure
What type of expenditure is heating/lighting?
Revenue expenditure
What type of expenditure is water?
Revenue expenditure
What type of expenditure is insurance?
Revenue expenditure
What type of expenditure are salaries?
Revenue expenditure
