Introduction to accounting – Fill in the blanks

1. are the amounts of cash or other assets taken by the owner from the business for personal use.

2. The excess of current assets over current liabilities is called .

3. is the process which provides information needed as a basis of making business decisions.

4. are assets which are purchased for permanent use in the business.

5. accounts have their existence even after the close of accounting year.

6. Balance sheet is a statement of assets and of a business.

7. Balance sheet is prepared to know the of a business entity.

8. Current assets are more liquid than assets.

9. Current liabilities are liabilities that are payable within .

10. The claims of creditors against the assets of a business are said to be .

11. Assets those can be converted into cash within one year of the operating cycle are called .

12. Two types of transactions are .

13. Recording two aspects of each transaction is known as system.

14. The difference between assets and liabilities represents .

15. is the interest of owners in a business.

16. An action under taken for the purpose of earning profit is called .

17. A person who owns business alon is called .

18. The amount of cash and goods which the proprietor of a business invests in the business is known as .

19. A dealing between two persons or things is a .

20. Goods sold in the course of trading are called .

21. Recording business transactions in a set of books is known as .

22. Money owned to an outsider is .

23. Goods purchased for resale are called .

24. Property of the business is called .

25. Withdrawal of cash or merchandise for personal use is called .

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