BTEC Business Unit 3 LO:C Purpose of accounting

What is the purpose of accounting?

• Recording transactions

• Managing business

• Compliance

• All of the above

Which of the following is a type of capital income?

• Cash sales

• Rent received

• Shares

• Credit sales

What is an example of revenue income?

• Loan

• Mortgages

• Commission received

• Owner's capital

What is an example of capital expenditure?

• Inventory

• Rent

• Land

• Salaries

Which of the following is a type of revenue expenditure?

• Goodwill

• Insurance

• Trade payables

• Marketing

What is the purpose of management of business in accounting?

• Preventing fraud

• Measuring performance

• Planning, monitoring and controlling

• Assisting with trade receivables

What is the purpose of compliance in accounting?

• Preventing fraud

• Following law and regulations

• Measuring performance

• Assisting with trade payables

Which of the following is a type of capital income?

• Discount received

• Debentures

• Interest received

• Heating and lighting

What is an example of revenue income?

• Water

• Telephone

• Cash sales

• Straight-line depreciation

What is an example of capital expenditure?

• Wages

• Marketing

• Vehicles

• Postage