ABF 2.1 Key Terms

What is the definition of "Cash"?

• Money in the form of coins or banknotes, especially that issued by a government, or an equivalent, as a check, paid when making a purchase.

• Assets commonly used up or sold within a year.

• Cost or charge incurred to operate a business.

• An agreement between two parties exchanging money for goods or services from the other.

What is a "Current asset"?

• An asset that will usually be owned or used up over a period longer than a year.

• Assets commonly used up or sold within a year.

• Expense that does not change with output.

• The total amount earned after subtracting all operating costs and overhead.

What does "Expense" refer to?

• Cost or charge incurred to operate a business.

• A book for logging business transactions.

• An agreement between two parties exchanging money for goods or services.

• Those expenses that may differ based on the business size.

What is a "Fixed expense"?

• Expense that does not change with output.

• The total amount earned after subtracting all operating costs and overhead.

• An asset that will usually be owned or used up over a period longer than a year.

• Money in the form of coins or banknotes.

What is a "Ledger" used for?

• A book for logging business transactions.

• An asset that will usually be owned or used up over a period longer than a year.

• Cost or charge incurred to operate a business.

• Those expenses that may differ based on the business size.

What does "Net income" mean?

• The total amount earned after subtracting all operating costs and overhead.

• An agreement between two parties exchanging money for goods or services.

• Assets commonly used up or sold within a year.

• Expense that does not change with output.

What is a "Noncurrent asset"?

• An asset that will usually be owned or used up over a period longer than a year.

• Money in the form of coins or banknotes.

• A book for logging business transactions.

• The total amount earned after subtracting all operating costs and overhead.

What is a "Transaction"?

• An agreement between two parties exchanging money for goods or services from the other.

• Cost or charge incurred to operate a business.

• Assets commonly used up or sold within a year.

• Expense that does not change with output.

What is a "Variable expense"?

• Those expenses that may differ based on the business size, such as fuel and fertilizer costs.

• Expense that does not change with output.

• An asset that will usually be owned or used up over a period longer than a year.

• A book for logging business transactions.