Concept Answer Definition Asset A Book of first entry. Debit B When income is more than expenses. Credit C A business with one owner. Capital D Transactions that generate cash for the business, e.g. sales. Liabilities E This happens between two parties where ownership exchanges take place. The business's assets are always equal to the owner's equity plus the liabilities. Cash Payments F Profit Cash receipts G The share of the owner in the business. H Amounts directly or indirectly involved in the operation of the business e.g., telephone, stationery Owner's equity Transactions J Money that the owner contributes to starting the business. When expenses exceed income. Sole Trader K An entry on the left-hand side of the ledger. Income L Retained or undrawn income for future use.
