Module 1: Introducing a Service Business

Question 1

finish the sentence: __ affairs and social circumstances influenced accounting

Answer 1

economic

Question 2

what year did Luca Pacioli make the double entry principle

Answer 2

1494

Question 3

what is the double entry principle

Answer 3

for every debit, there is a corresponding credit

Question 4

where do businesses record their financial transactions

Answer 4

current account

Question 5

name the 5 types of service businesses

Answer 5

• sole trader
• partnership
• private company
• public company
• close corporation

Question 6

name the 3 types of businesses

Answer 6

• service business
• retail/trading business
• manufacturing business

Question 7

give the correct accounting term: the funds invested to start the business

Answer 7

capital

Question 8

give the correct accounting term: the business from whom we purchase on credit our material cost, stationery, assets etc

Answer 8

supplier

Question 9

give the correct accounting term: items/services for the business to operate efficiently eg. telephone, insurance, electricity

Answer 9

operating expenses

Question 10

give the correct accounting term: all cash or credit card activities that occurs at the business

Answer 10

transaction

Question 11

give the correct accounting term: the papers which contain all the info of the transactions

Answer 11

source document

Question 12

give the correct accounting term: all possessions of the business

Answer 12

assets

Question 13

give the correct accounting term: operating income less operating expenses

Answer 13

profit

Question 14

give the correct accounting term: the financial worth of the owner in the business

Answer 14

owners equity

Question 15

classify the account: repairs

Answer 15

incomeexpense

Question 16

classify the account: cash float

Answer 16

asset

Question 17

classify the account: capital

Answer 17

equity

Question 18

classify the account: current income

Answer 18

income

Question 19

classify the account: wages

Answer 19

expense

Question 20

classify the account: land & buildings

Answer 20

asset

Question 21

classify the account: bank

Answer 21

asset

Question 22

classify the account: equipment

Answer 22

asset

Question 23

classify the account: drawings

Answer 23

equity

Question 24

what is the left side of the general ledger

Answer 24

debit

Question 25

what are the funds the business pays to protect and safeguard the business property and assets

Answer 25

insurance

Question 26

what is a direct electronic payment via a bank account

Answer 26

EFT

Question 27

what are the funds the business pays to SARs on profits generated for the year

Answer 27

taxes

Question 28

what is the right side of the general ledger

Answer 28

credit

Question 29

what is the source document the business issues to our tenant for rent income

Answer 29

receipt