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Quiz Worksheet Acct

This document provides an overview of key accounting concepts for a 9th grade class, including: Book-keeping is the process of recording all financial transactions, while accounting identifies, measures, records, and communicates financial information. A statement of financial position shows a business's assets (what it owns/is owed) and liabilities (what it owes). Assets include current assets like cash that can be converted within a year, and non-current fixed assets like property and equipment. Liabilities include current short-term debts due within a year and non-current long-term debts due after. The accounting equation balances assets with capital (owner's equity) and liabilities.

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41 views4 pages

Quiz Worksheet Acct

This document provides an overview of key accounting concepts for a 9th grade class, including: Book-keeping is the process of recording all financial transactions, while accounting identifies, measures, records, and communicates financial information. A statement of financial position shows a business's assets (what it owns/is owed) and liabilities (what it owes). Assets include current assets like cash that can be converted within a year, and non-current fixed assets like property and equipment. Liabilities include current short-term debts due within a year and non-current long-term debts due after. The accounting equation balances assets with capital (owner's equity) and liabilities.

Uploaded by

onion rings
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 4

Al-Rowad International School

Girls’ Section
HUMANITIES & SOCIAL DEPARTMENT
ACADEMIC YEAR 2022- 2023
SEMESTER 1

*********************************************************************

Subject: Accounting Grade: 9IG

FIRST SEMESTER QUIZ WORKSHEET

BOOK-KEEPING
 Book-keeping is a process of detailed recording of all the financial
transactions of a business.
 It is the primary stage in the accounting process.

ACCOUNTING
 Accounting is the systematic process of identifying, measuring,
recording, classifying, summarizing, interpreting & communicating
financial information.
 According to the American Institute of Certified Public Accountants
“Accounting is the art of recording, classifying and summarising in a
significant manner and in terms of money, transactions and events
which are in part, at least of a financial character and interpreting the
results thereof”.
 Accounting uses the book-keeping records to prepare financial
statements at regular intervals.

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STATEMENT OF FINANCIAL POSITION
A statement of financial position shows the assets and liabilities of a
business on a certain date.
This shows what the business owns and what is owing to it, its assets; and
what the business owes, its liabilities.

ASSETS
 Assets are economic resources of an enterprise that can be expressed in
numerical terms.
 Things owned by the business (or owed to the business) are regarded as the
resources of the business or the assets of the business.

ASSETS

Current assets Non-current assets/ Fixed assets

CURRENT ASSETS
 Current assets are those assets which are either in the form of cash or can be
easily converted into cash in the normal course of business or within one year.
 Current assets include cash in hand, cash at bank, short-term investments,
bills receivable, debtors, prepaid expenses, accrued income, closing stock, etc.

NON-CURRENT/FIXED ASSETS
Fixed assets can be classified into:
i) Tangible fixed assets
ii) Intangible fixed assets

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i) Tangible fixed assets:
Tangible fixed assets are those which have physical existence or which
can be seen and felt.
Examples: plant and machinery, building and furniture.

ii) Intangible fixed assets:


Intangible fixed assets are those which do not have any physical
existence or which cannot be seen or touched.
Examples: goodwill, trade-marks, copy rights and patents.

LIABILITIES
 Liabilities represent anything owed by the business.
LIABILITIES

Fixed or long term current or short-term


Liabilities Liabilities

Fixed or long-term liabilities:


 The liabilities which are to be repaid after one year or more are termed as long-
term liabilities. Example: Long-term loans.

Current or short-term liabilities


 The liabilities which are expected to be paid within the normal operating cycle or
one year are termed as current or short-term liabilities.
 These include bank overdraft, creditors, bills payable, outstanding expenses, etc.

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CAPITAL
 Capital is the total resources provided by the owner and represents what the
business owes the owner.

The accounting equation

Assets = Capital + Liability


or
Assets = Owner’s Equity + Liability

INVENTORY: are the goods a business has available for resale.

TRADE PAYABLE: Represents the amount the business owes to the credit
suppliers of goods (the trade creditors).

TRADE RECEIVABLES: Represents the amount owed to the business by its


credit customers (the trade debtors).

Format of statement of financial position

Assets Amount Liabilities Amount


xx xxx xx xxx

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