Quiz 1 Introduction to Financial Accounting

Individuals who have started a business on their own.

• Sole Trader

• Business Partner

• Director

• Employee

A business organized under the laws of the company as a separate legal entity.

• Partnership

• Company

• Enterprise

• Sole Trader

A person or entity that has an interest in the information that relates to the ability of the business to pay dividends.

• Managing Director

• CEO

• Shareholder

• Supplier

A specialized field of accounting concerned mainly with the recording and reporting of financial data and activities to users to facilitate making decisions.

• Taxation

• Audit

• Management Accounting

• Financial Accounting

An economic event or condition that initiates the accounting process of recording it in an accounting system.

• Accounting Equation

• Accounting Element

• Business Transactions

• Accounting Concept

The process of collecting, measuring and recording an enterprise’s transactions.

• Business Transaction

• Financial Accounting

• Bookkeeping

• Financial Statements

An assumption is that a sale is deemed to have taken place at the time at which the goods are delivered.

• Revenue Recognition

• Relevance

• Matching Concept

• Reliability

An item of value held by an entity that is going to generate income in the future.

• Liability

• Asset

• Revenue

• Expense

Amounts owing by the business to its creditors.

• Trade Receivables

• Trade Payables

• Loan from Bank

• Owner's Equity

An amount owed by the customer.  

• Trade Payable

• Loan from Bank

• Trade Receivable

• Owner's Equity