1
Section 1 IGCSE Accounting
Book-keeping - -Correct answer-The detailed recording of all
the financial transactions of a business
Accounting - -Correct answer-Using book-keeping records to
prepare financial statements and to assist in decision making
Statement of financial position - -Correct answer-Shows the
assets and liabilities of a business on a certain date
Capital - -Correct answer-The total resources provided by the
owner and represents what the business owes the owner
Assets - -Correct answer-Represents anything owned by or
owing to the business
Liabilities - -Correct answer-Represents anything owed by the
business
Accounting equation - -Correct answer-Assets = Liabilities +
Owner's Equity
1
, 2
Inventory - -Correct answer-The goods a business has
available for resale
Trade payables - -Correct answer-Represents the amount the
business owes to the credit suppliers of goods
Trade receivables - -Correct answer-Represents the amount
owed to the business by its credit customers
Double entry book-keeping - -Correct answer-Process of
making a debit entry and a credit entry for each transaction
Drawings - -Correct answer-Represents any value taken from
the business by the owner of that business
Balance on ledger account - -Correct answer-The difference
between the debit side and the credit side
Carriage - -Correct answer-Cost of transporting goods
Carriage inwards - -Correct answer-The cost of bringing the
goods to the business
2
Section 1 IGCSE Accounting
Book-keeping - -Correct answer-The detailed recording of all
the financial transactions of a business
Accounting - -Correct answer-Using book-keeping records to
prepare financial statements and to assist in decision making
Statement of financial position - -Correct answer-Shows the
assets and liabilities of a business on a certain date
Capital - -Correct answer-The total resources provided by the
owner and represents what the business owes the owner
Assets - -Correct answer-Represents anything owned by or
owing to the business
Liabilities - -Correct answer-Represents anything owed by the
business
Accounting equation - -Correct answer-Assets = Liabilities +
Owner's Equity
1
, 2
Inventory - -Correct answer-The goods a business has
available for resale
Trade payables - -Correct answer-Represents the amount the
business owes to the credit suppliers of goods
Trade receivables - -Correct answer-Represents the amount
owed to the business by its credit customers
Double entry book-keeping - -Correct answer-Process of
making a debit entry and a credit entry for each transaction
Drawings - -Correct answer-Represents any value taken from
the business by the owner of that business
Balance on ledger account - -Correct answer-The difference
between the debit side and the credit side
Carriage - -Correct answer-Cost of transporting goods
Carriage inwards - -Correct answer-The cost of bringing the
goods to the business
2
