Accounting Terms 1

What is an asset?

• resources owed to the business

• a resources owned by the business

• amounts added to the business by the owner

• bills incurred to start the business

What is a liability?

• Total money owed by the business

• Total money spent by the business

• Total of money supplied to the business by the owner

• Money earned by the business from sales

If your classmate asked you "what is income?" What would your answer be?

• Costs incurred through operating the business

• Resources owed by the business

• Money owed by the business

• Money coming in to the business from its usual transactions

What is Capital?

• Total of resources supplied to the business by the owner

• Total costs incurred by the owner in operating the business

• Money coming to the business from its usual transactions

• Resources owned by the business

What is an expense?

• Total of money owed by the business

• Resources owned by the business

• Cost incurred in operating the business

• Total of money owed by the business

What is revenue?

• Revenue is the total amount of expenses incurred by a business
• Revenue is the profit made by a company after taxes
• Revenue is the number of employees in a company
• Revenue is the total amount of income generated by the sale of goods or services.

Profit can be defined as?

• Amount of money spent on expenses
• Financial gain obtained when revenue exceeds expenses
• Total revenue generated
• Loss incurred when expenses exceed revenue

Loss is the excess of expenses over _______.

Which of the following describes the ledger?

• Record of the closing-down of the business

• Records of the cash deductions of the owner

• Records of the day to day transactions of the business

• Record of the special transactions of the business

For accounting purposes, what is a journal?

• Record of special transactions of the business

• Record of the day to day transactions of the business

• Record of all payments made by the business

• Record of all cash coming into the business