2022 4-9 T2W3 Part 2

Equity refers to claim by the owner(s) on the net _____ of a business.

All business activities are represented by five accounting _____, i.e. assets, liabilities, equity, income and expenses.

Income refers to amounts _____ from the activities of a business

Income refers to amounts earned from the _____ of a business

Expense refers to cost _____ in the operation of the business to earn income in the same accounting period.

Expense refers to cost incurred in the _____ of the business to earn income in the same accounting period.

Expense refers to cost incurred in the operation of the business to _____ _____ in the same accounting period.

The accounting entity theory states that the business and the owner are _____ entities and transactions are recorded from the point of view of the business.<br />Hence, contributions by the owner to the business must be recorded as “Capital” while withdrawals by the owner from the business for personal use must be recorded as “Drawings” in the books of the business.

The accounting entity theory states that the business and the owner are separate entities and _____ are recorded from the point of view of the business.<br />Hence, contributions by the owner to the business must be recorded as “Capital” while withdrawals by the owner from the business for personal use must be recorded as “Drawings” in the books of the business.

The accounting entity theory states that the business and the owner are separate entities and transactions are _____ from the point of view of the business.<br />Hence, contributions by the owner to the business must be recorded as “Capital” while withdrawals by the owner from the business for personal use must be recorded as “Drawings” in the books of the business.