IGCSE Accounting Section 1 Notes & Practice Questions (Fully Explained)

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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




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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




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