Overall Income And Accounting IMPORTANT

Question 1

What are the purposes of accounting

Answer 1

Recording transactions
Management of a business
Compliance
Measuring performance
Control

Question 2

What does compliance entail as a purpose of accounting?

Answer 2

Preventing fraud, compliance with regulations

Question 3

What does control entail regarding purpose of accounting

Answer 3

Controlling trade receivables+payables

Question 4

What are types of capital income

Answer 4

Loans
Mortgages
Shares
Debentures
Owners

Question 5

What types of capital income are external

Answer 5

Loans
Mortgages
Shares
Debentures

Question 6

What types of capital income are internal

Answer 6

Owners capital

Question 7

What are types of revenue income?

Answer 7

Cash sales
Credit sales
Rent received
Commission received
Interest received
Discount received

Question 8

Is revenue income external or internal

Answer 8

External

Question 9

Is capital expenditure non current or current?

Answer 9

Non current

Question 10

Examples of capital expenditure that are tangible

Answer 10

Land
Machinery
Equipment
Vehicles

Question 11

Examples of capital expenditure that are intangible

Answer 11

Goodwill
Trademarks
Patients
Brand names

Question 12

Examples of revenue expenditure

Answer 12

Inventory
Insurance
Heating + lighting
Water

Question 13

Examples of current assets

Answer 13

Cash
Inventory
Raw materials

Question 14

Examples of current liabilities

Answer 14

Overdraft
Trade credit
Short term loans

Question 15

Examples of non-current liabilities

Answer 15

Mortgages
Long term bank loans