Gr 7 EMS Topic 5 Accounting concepts

The system/process that provides information about what a business has done with the money it has earned.

• budgeting

• accounting

• bookkeeping

True or false?

Capital refers only to money contributed by the owner to the business.

• True

• False

True or false?

Capital can include computers, desks, vehicles furniture and property.

• True

• False

The accounting term used for the possessions of the business.

• capital

• liabilities

• assets

The debts of the business.

• Liabilities

• Assets

• Expenses

Sales

• Income from selling goods

• Income from providing services

• Income from renting out property

• Income from a bank deposit

Income from providing services

• Sales

• Current income

• Rent income

• Intereste income

The costs of running the business

• liabilities

• expenses

• debts

Which terms are opposites?

• profit and income

• loss and expenses

• profit and loss

• debt and liabilities

The unspent part of income

• profit

• loss

• liabilities

• savings