Accounting Part 2

Debtors control is

• Non-current asset

• Current liability

• Current asset

• An expense

Assets and expenses are both

• equity accounts

• uses of funds

• sources of funds

• balance sheet items

An income is

• Money coming into a business

• A value sacrificing activity

• A use of funds

• A value generating activity

A creditor is

• a supplier the business buys from on account

• A customer the business sells to on account

• someone who owes the business money

• a long-term liability

A debit order is

• an agreement with the bank that they will pay a set amount on your behalf to settle a monthly bill.

• an agreement with another business that they will send you monthly bill to your bank for payment.

• an agreement with the bank to enable the business to over-spend on their account up to a limit.

• the source document used to complain about damaged goods or incorrect charges.

Drawings is

• An asset

• A liability

• An equity

• An income

• An expense

Creditors control is

• an asset

• A liability

• An equity

• An expense

• An income

Insurance is

• An asset

• A liability

• An equity

• An income

• An expense

Debtors allowances is

• an asset

• A liability

• An equity

• An income

• An expense

Petty cash is

• An asset

• A liability

• An equity

• An income