What is accounting

Question 1

what is accounting

Answer 1

provides information about what a business has done with the money that it has earned

Question 2

accounting concepts

Answer 2

they are the terms used in the language of accounting It helps to understand where or how the money was used or came from

Question 3

Capital

Answer 3

its what the owner puts into their business, and to keep going

Question 4

Assets

Answer 4

possessions that are used to run a business

Question 5

Income

Answer 5

money earned from the business

Question 6

Expenses

Answer 6

are running costs of a business

Question 7

Profit

Answer 7

the amount by which income is greater that expenditure

Question 8

loss

Answer 8

the amount of money of which expenditure is greater then income( opposite of profit)

Question 9

bank

Answer 9

a place where businesses keep their money safe until it is needed

Question 10

Deposit

Answer 10

when money is put into an account

Question 11

withdraw

Answer 11

to take money out of an account

Question 12

Current account

Answer 12

its used for daily transactions e.g. buying groceries/stock,paying bills and salary deposited. It is also called cheque account

Question 13

Transaction

Answer 13

it is a business deal when money moves from one party to another. e.g. paying for items, receiving money

Question 14

Budget

Answer 14

a plan of how much money is expected to be received and how much it is expected to be spent

Question 15

Liabilities

Answer 15

they are the depts of a business. When business owners don’t have enough money to start a business, they borrow money from the bank(a loan) but it has to be paid back but with interest.

Question 16

Services

Answer 16

They are non-tangible products where a skill is used to meet customers in need. e.g. hairdresser, lawyers, doctors and painters

Question 17

loan

Answer 17

it is a sum of money that is expected to be paid with interest