well you know and understand each Key Term. q I know and understand this Key Term. q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet. When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2. 3. 4. 5.
6. 7.
Creditors are people who are owed money by a business. q q q Debtors are people who owe a business money. Assets are items of value that the business owns.
q q q q q q
Liabilities are debts that the business owes to other people. q q q
An analysed cash book is used to record all income received and all payments made by a business.
Ledger accounts are used to record the details of every financial transaction undertaken by a business.
q q q q q q
A trial balance is a list of balances brought down (balance b/d) from all of the ledger accounts and the analysed cash book in order to check accuracy.
Key Concepts
1. Explain why keeping accurate financial accounts is important for a business.
2. Describe the purpose of an analysed cash book in a business.
3. Where can a business locate the information needed to record income and expenditure in an analysed cash book?
4. (a) What is the purpose of ledger accounts? (b) Explain the purpose of a trial balance.
Critical Thinking Skills
1. The following information is provided by Mundo Enterprises for the month of January 20—: 7 January 9 January
