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Accounting Definitions

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

What is 'Capital' in a business context?

a)

Money spent on advertisements

b)

Money paid to employees

c)

Money that the owner uses to start the business

d)

Money earned by the business

2.

What are 'Drawings'?

a)

Money earned by providing a service

b)

Money received from trading stock

c)

Money paid for repairs

d)

Money taken by the owner for personal use

3.

What does 'Income' refer to?

a)

Money owed to creditors

b)

Money invested in equipment

c)

Money earned by the business

d)

Money spent on expenses

4.

What is 'Sales'?

a)

Money received from renting out property

b)

Money spent on packaging materials

c)

Money paid for salaries

d)

Money received from trading stock sold

5.

What is 'Net Profit'?

a)

Total income minus total expenses

b)

Total sales minus cost of sales

c)

Total capital minus drawings

d)

Total income plus total expenses

6.

What is a 'Liability'?

a)

Money invested in equipment

b)

Money earned from services

c)

Money owed to someone outside the business

d)

Money received from sales

7.

What does 'Overdraft' mean?

a)

Money owed to suppliers

b)

Money in a checking account

c)

Money owed to the bank

d)

Money received from interest

8.

What is a 'Transaction'?

a)

A record of expenses

b)

Any activity involving money or items of value

c)

A type of asset

d)

A form of income

9.

What is 'Interest on Overdraft'?

a)

Interest paid to the bank for negative balance

b)

Interest paid on loans

c)

Interest earned on savings

d)

Interest received from the bank

10.

What are 'Expenses'?

a)

Money that is spent and cannot be recovered

b)

Money that is earned by the business

c)

Money received from sales

d)

Money invested in capital

11.

Choose the correct example of a non-current asset.

a)

Land and buildings

b)

Bank

c)

Bank overdraft

d)

Cash float

12.

Choose the correct example of a current asset

a)

Land and buildings

b)

Bank

c)

Bank overdraft

d)

Vehicles

13.

Choose the correct example of a non-current asset.

a)

Land and buildings

b)

Bank

c)

Bank overdraft

d)

Cash float

14.

Choose the correct example of a non-current liability

a)

Vehicles

b)

Mortgage loan

c)

Bank overdraft

d)

Equipment

15.

Choose the correct example of a current liability.

a)

Fuel

b)

Mortgage loan

c)

Creditors

d)

Equipment