Chapter 2

Question 1

Sales

Answer 1

This is the exchange of goods or services for money. You may see the terms commission or fees used for certain services.

Question 2

Purchases

Answer 2

This refers to the purchase of goods for use by the company for onward sale to a customer.

Question 3

Receipts

Answer 3

This is money received by the business

Question 4

Payments

Answer 4

This is money paid out from the business

Question 5

Income

Answer 5

Income includes all forms of money being received by the business

Question 6

Expenses

Answer 6

This is all of the money the business has to pay out on rent, electricity, heating, telephone, Etc does not include the purchase of goods for re-sale

Question 7

Expenditure

Answer 7

This refers to all the money the business has to pay out

Question 8

Petty cash

Answer 8

This is a small cash reserve held by a business to pay for miscellaneous items

Question 9

Payroll

Answer 9

This is the function where the business pays their employees their salaries

Question 10

Account

Answer 10

This is a record of similar financial transactions in a business

Question 11

Ledger

Answer 11

This is a set of related accounts

Question 12

Till roll

Answer 12

Printed list of all payments received through a til