YEAR 3 REVIISON

A record of a business's financial transactions is ...

• petty cash

• a fund ledger

• a line graph

_____ ____ is reserved for small, office-related expenditures.

A __________ loan — also called a secured loan — is backed by something you own.

Short- and long-term debt, acconuts payable and salaries are...

• assets

• liabilities

Things of value not easily converted to cash are...

• fixed assets

• intangibles

• liabilities

A document showing a company's finances (assets and liabilities) is called...

• Statement of Financial Position

• Balance Sheet

• Cashflow Statement

• Income Statement

The amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum) is called ...

Deciding how much something is worth in finance is called ...

The historical cost of an asset at the time it is acquired or created is the value of the costs incurred in acquiring or creating the asset, comprising the consideration paid to acquire or create the asset plus transaction costs.

• True

• False

Some countries with regular high inflation, e.g. in South America, use replacement cost accounting.

• True

• False