Financial Concepts exercise

Another name for revenue

• Capital

• expenses

• profit

• drawings

Drawings are ___________________

• money that is withdrawn by business owner for personal use

• Money used to pay salaries

• Money withdrawn for petty cash use

• Revenue used to start a business

Money used to start a business is called

• debtors

• debit entry

• Investments

• capital

What are salaries used for?

• To pay for drawings

• To pay for any expense in the business

• To pay employees for the work thy do

• To pay the board members of the company of the small business

Account payable is used to pay for--------

• Money owed by the business to it's suppliers

• Goods that we brought on credit

• Money received by the business from it's creditors

• Goods that we sold on credit

Posting errors are found in__________

• cash book

• General journal

• trial balance

• balance sheet

Double entry is _______________

• An accounting term which states that cash transactions are repeated

• An accounting term that states that all transactions are written twice

• An accounting term stating that every financial transaction has equal and opposite effects in at least two different accounts.

• An accounting term which states that debit entries are superior to credit entries

What is included in an effective customer service policy?

• Following up overdue payments promptly.

• Acceptance of exchanges within 28 days of purchase.

• Recording complaints within 28 days of receipt.

• Introduction of regular staff appraisals.

What is a financial control procedure?

• Reducing staff workload.

• Separating duties and funds.

• Setting budgets and targets.

• Providing staff training.

A person who owes the company or organization money is called--------------

• debit

• Debtor

• credit

• creditor