Accounting Concepts Matching Activity
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ACTIVITY 4 ACCOUNTING CONCEPTS A. Match the descriptions in Column A with the concepts in Column B. COLUMN A 4.1 An activity where money or items of value are exchanged between two parties. 4.2 The process of capturing information about business transaction. 4.3 When expenses are higher than income. 4.4 A plan of how expected expenses for the next month Will be paid. 4.5 A place where you can keep your money safe until you Need it to make specific payments. 4.6 When income is higher than expenses. 4.7 The part of a person's income that is not spent but is kept For future use. 4.8 Receipts, bank deposits slips and invoices. COLUMN B A. Loss, B. Transaction, C. Budget, D. Financial records, E. Savings, F. Source document, G. Profit, H. Bank. B. Match Column A with Column B. Indicate the answer in the Column in the middle. COLUMN A: 1. Borrowed capital (Answer: D), 2. Own capital (Answer: A), 3. Current asset (Answer: G), 4. Long-term liability (Answer: B), 5. Fixed asset (Answer: E). COLUMN B: A. Money already owned by the business owner, B. Debts to be paid by the business over a long period more than one year, C. Items converted into cash within 1 year, D. Money borrowed from banks, family, or friends, E. Items used to generate income, not converted into cash.
This question includes visual content: The image displays two matching exercises. Part A has a table with two columns: Column A (descriptions, numbered 4.1 to 4.8) and Column B (terms A to H), with an empty 'ANSWER' column. Part B has a table with three columns: Column A (terms 1 to 5), an 'ANSWER' column already filled, and Column B (definitions A to E). There is also a diagonal line drawn through the middle table in Part B connecting item 3 in Column A to a row in Column B.
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Hi Joyce, let's explore these fundamental accounting concepts by matching the descriptions in Column A with the terms in Column B.
Activity 4: Accounting Concepts
Let's start with item four point one: An activity where money or items of value are exchanged between two parties.
4.1 Exchanging money or items of value between parties.
In accounting, an exchange like this is called a transaction. So, we match this with item B.
Next, four point two: The process of capturing information about business transactions.
4.2 Process of capturing transaction information.
This process creates a trail of data known as financial records, which is option D.
Four point three: When expenses are higher than income.
4.3 Expenses > Income
When you spend more than you earn, you incur a loss. This matches with option A.
Moving to four point four: A plan of how expected expenses for the next month will be paid.
4.4 A plan for future expenses.
Financially planning for the future is called a budget. That corresponds to option C.
Let's continue with the rest of the first section.
Accounting Concepts (Continued)
Description four point five says: A place where you can keep your money safe until you need it for specific payments.
4.5 A safe place to keep money.
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