Entrepreneurship and Financial Management Flashcard

Front

What is the primary purpose of bookkeeping in a business?

Back

To record financial transactions

Front

Which of the following is an advantage of cash transactions? It protects personal information, It may involve additional charges, It is simple and faster, It provides a record of transactions

Back

It is simple and faster

Front

What is a liability?

Back

Debts owed by a business

Front

Which of the following is an example of an asset? Bank loans, Money in bank accounts, Creditors, Expenses

Back

Money in bank accounts

Front

What does the bookkeeping formula 'Assets = Liabilities + Capital' represent?

Back

The financial position of a business

Front

What is the definition of income?

Back

Money earned from work or investments

Front

Which of the following is a passive source of income? Fees, Rent, Salaries, Wages

Back

Rent

Front

What is the importance of budgeting?

Back

To control spending

Front

Which of the following is a way to spend money wisely? Buying items on credit, Buying items impulsively, Ignoring prices in different shops

Back

Making a budget and sticking to it

Front

What is an ethical practice in budgeting?

Back

Following a budget strictly