Key Terms - Introduction to Bookkeeping Transaactions

A Liability is

• A financial obligation or debt
• An asset or property.
• A source of income.
• A legal document.

What financial information would you usually find on a Statement of Account

• Invoices

• Credit Notes

• Payments Received

• Balance owed

• Delivery note

What is a Book of Prime Entry

• A double entry ledger

• A receivables ledger

• A list of financial transactions

• A trial balance

What does the statement of profit and loss show

• Income minus expenses

• Assets minus liabilities

• Owners capital

• Total of receivables

What is a prompt payment discount

• A discount for a bulk purchase

• A discount calculated on the unit price of a service/product before VAT

• A discount for early payment

• A discount on a loan repayment

Which of these accounts would you find in the general ledger

• Asset account

• Receivable account

• Payable account

• Expenses account

What is a purchase order

• An order issued by the buyer to the seller

• An order issued by the seller to the buyer

• A demand for payment

• A delivery note

What is the cash book

• Where only notes and coin receipts are recorded

• The petty cash account

• A book of prime entry where entries into the bank are recorded

• A book of prime entry where entries in and out of the bank are recorded