CHAPTER 21 – INTRODUCTION TO ACCOUNTS tsio 1. Copy and fill in the blanks.
a. ___________ is the left-hand side of the account. This is where any money coming ___________ an analysed cash book is recorded. ___________ is the right-hand side of the account. This is where any money going ___________ of an analysed cash book is recorded.
b. ___________ columns show which account contains the entry for a transaction.
c. Sales for which payment is received immediately are ___________ sales.
d. Sales in which payment for goods or services is received in the future are ___________ sales.
e. Purchases for which payment is made immediately are ___________ purchases.
f. Purchases for which payment is made at a later date are ___________ purchases.
g. A ___________ is any person, organisation or social group that affects or is affected by a business.
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2. Outline four reasons why a business prepares accounts.
3. Suggest three problems a business might encounter if it does not keep accurate accounts.
4. Draw a diagram to show the steps that accounting follows.
5. If you are reviewing your accounts and you see a folio reference that says GL7, what would this mean?
6. Explain the difference between cash sales and credit sales.
7. Explain the difference between cash purchases and credit purchases.
8. Explain why it is important for organisations to share information with stakeholders about the impact their transactions have on the environment and society.
