Business basics
This is the primary reason most businesses are established.
What is to earn a profit?
This ownership structure has one owner.
What is a sole proprietor?
Resources controlled by the business that are expected to provide future economic benefits.
What are assets?
Cash at Bank is classified as this type of asset.
What is a current asset?
Receipt issued for cash services provided.
What is the Cash Receipts Journal (CRJ)?
These are the two main sources of finance available to a business.
What are internal and external sources of finance?
This ownership structure is owned by between 2 and 20 people.
What is a partnership?
Present obligations owed by the business.
What are liabilities?
Equipment is classified as this type of asset.
What is a non-current asset?
Tax invoice issued to a customer, payment due in 30 days.
What is the Sales Journal (SJ)?
Name one factor that can contribute to business success.
What is effective management, customer satisfaction, quality products, or good financial management?
This ownership structure has limited liability and shares are not traded publicly.
What is a private company?
The residual interest in the assets after liabilities are deducted.
What is owner's equity?
Accounts Payable is classified as this type of liability.
What is a current liability?
Purchased inventory on credit.
What is the Purchases Journal (PJ)?
This professional helps businesses prepare financial reports and provide financial advice.
Who is an accountant?
This ownership structure can sell shares to the public through a stock exchange.
What is a public company?
Income earned from the normal operations of the business.
What is revenue?
A mortgage due in 10 years is classified as this type of liability.
What is a non-current liability?
Paid rent by EFT.
What is the Cash Payments Journal (CPJ)?
Instead of starting a business, an individual may choose this investment option involving shares.
What is investing in the share market?
One advantage of a sole proprietor.
What is complete control over decision-making?
Costs incurred in earning revenue.
What are expenses?
A $60,000 loan repayable at $12,000 per year has this current liability amount.
What is $12,000?
Received payment from a customer who previously owed money.
What is the Cash Receipts Journal (CRJ)?