Ems Ct

Question 1

Assets

Answer 1

Resources owned by a business

Question 2

Owners equity

Answer 2

The owner’s share in the business

Question 3

Capital

Answer 3

Money or assets invested by the owner

Question 4

Drawings

Answer 4

Money or assets taken by the owner for personal use

Question 5

Income

Answer 5

Money earned by the business

Question 6

Expenses

Answer 6

Costs incurred to run a business

Question 7

Profit

Answer 7

Income exceeds expenses

Question 8

Loss

Answer 8

Expenses exceed income

Question 9

Liabilities

Answer 9

Debts the business owns

Question 10

Accounts payable

Answer 10

Money the business owes to suppliers

Question 11

Creditors

Answer 11

People or entitled the business owes money to

Question 12

Credit

Answer 12

Buying goods or services now, paying later

Question 13

Worth

Answer 13

Value of something

Question 14

Net worth

Answer 14

Assets minus liabilities

Question 15

Historical cost

Answer 15

Recording assets at the original cost

Question 16

Business entity

Answer 16

Business is separate from its owner

Question 17

Materiality

Answer 17

Significant information must be reported

Question 18

Double entry

Answer 18

Every transaction affects two accounts

Question 19

Spreadsheet

Answer 19

Digital tool for financial calculations