The Accounting Process

• Part-A
• Brief Questions
• 2nd Part

9.What is investments by owner ?
Ans:The assets put into the business by the owner.

10.What do you mean by Monetary unit assumption?
Ans:An assumption stating that only transaction data that can be expressed in terms of money be included in the accounting records.

11.What is net income ?
Ans:The amount by which revenues exceed expenses.

12.What is net loss?
Ans:The ownership claim on total assets.

13.What is owner equity?
Ans:The ownership claim on total assets.

14.What is Owner's equity ?
Ans:A financial statement that summarizes the changes in owner's equity for a specific period of time.

15.What do you mean by Proprietorship?
Ans:A business owned by one person.

16.What is Revenues?
Ans:The gross increase in owner's equity resulting from business activities entered into for the purpose of earning income.