Accounting Terminology

Accounting records transactions and events of a financial nature only. TRUE OR FALSE?

• True

• False

This book contains all the accounts of the firm.

• Cash Book

• Journal

• Ledger

• Trade Book

which of the following is not an account in the analysis and interpretation process?

• Trading Account

• Profit and Loss account

• Balance sheet

• Purchase account

Book-Keeping and accounting are one and the same. TRUE OR FALSE?

• TRUE

• FALSE

The amount the owner has invested on the firm is known as _______________.

• capital

• funds

• income

• revenue

The amount which the firm owes to outsiders is known as ___________.

• money owed

• asset

• liability

• creditor

Anything which will enable the firm to get cash or a benefit in the future is known as ____________.

• Liability

• Asset

• Capital

• Stock

The sum of money received by customers is known as ___________.

• Capital

• Asset

• Revenue

• Money

________________ is the monetary value of inputs or resources consumed by the firm.

• Revenue

• Expenses

• Income

• Liability

The total amount of goods purchased by the firm for use or sale :

• Assets

• sales

• purchases