W7.2

Question 1

Economic resources owned by the business expected for future gained

Answer 1

Assets

Question 2

Expected to realize in or intended for sale or consumption in the entities normal operating cycle

Answer 2

A current asset

Question 3

Includes the amount collectible from any

Answer 3

Cash equivalent

Question 4

Amount collectible from the customer to whom sales has been made or services have been rendered on account on credit

Answer 4

Account receivable

Question 5

A promissory note issued by the client or customer in exchange for service or goods

Answer 5

Notes receivable

Question 6

Amount of interest collectible and promissory notes received from customers

Answer 6

Interest receivable

Question 7

Unsold goods at the end of an accounting period

Answer 7

Inventories

Question 8

Supplies both for use in the business or service and benefits to be received by the business in the future paid in advance

Answer 8

Prepaid expenses

Question 9

Known as long term assets or resources owned by the business that are not expected to be converted into money within 1 year

Answer 9

Non-current assets

Question 10

Include depths obligations to pay and claims of the creditors on the assets of the business

Answer 10

Liability

Question 11

Payable within normal operating cycle

Answer 11

Current liabilities

Question 12

Depths arising from purchase of an asset

Answer 12

Accounts payable

Question 13

Deaths rising from purchase of an asset or acquisition of service on account evidenced by a promissory note

Answer 13

Notes payable

Question 14

Liability to pay the bank or other financing institution arising from funds borrowed

Answer 14

Loans payable

Question 15

Obligations to pay companies for service received form them (electricity, communication, water)

Answer 15

Utilities payable

Question 16

Includes the interest of the owner on the business

Answer 16

Owners equity or capital

Question 17

An account bearing the name of owner representing the original and additional investment of the owner of the business increased by the amount of net income earned during the year

Answer 17

Capital

Question 18

Represent the withdrawals made by the owner of the business

Answer 18

Drawing

Question 19

Total amount of money a business earns from its primary operations

Answer 19

Revenue

Question 20

Operating expenses are the cost that the company incurs during its normal business operation

Answer 20

Note

Question 21

Otherwise called the nature of expense method presents expenses according to nature

Answer 21

Nature form

Question 22

Known as the cause of sales method presents expenses according to function

Answer 22

Functional form

Question 23

Includes revenues earned or generated by the business in performing services for a customer or client

Answer 23

Service income