business basics

accounting is

• government aided institutions and agencies

• the process by which certain methods and procedures are classified analyze and summarize

• the process of collecting data for future endeavors

• to invest in a business and give financial advise

which of the following are purpose of accounting

• provide financial information and control of a business

• provide goods and services to the general public

• ascertain the profit and loss of a business

• ascertain the value of assets and liabilities of a business

Which of the following is not an internal users of accounting

• managers

• general public

• owners

• supervisors

which of the following is not an external user of accounting

• Government agencies

• The press/media

• Board of Directors

• Labour Unions

Anything that the business owns are

• Capital

• Assets

• creditors

• Liabilities

Anything that the business owes for

• Accounts receivable

• Capital

• Liabilities

• Stock

money and other assets used by the owner to start the business.

• Debtors

• Assets

• Liabilities

• Capital

A statement showing the assets, capital and liabilities of a business is called

• Cash book

• Balance Sheet

• Bank overdraft

• Loan book

a sum of money or other assets that a person lends to another with the condition that it will be repaid or returned at a later date.

• Account payable

• Bank overdraft

• Loan

• Account receivable

Occurs when the bank allows you to withdraw more money than what you have in your bank account

• Assets

• Capital

• Loan

• Bank overdraft