TASK 2.1 (70 Marks)
A. Do you think that cash and profits are the same? Can you think of any business transactions
that do not involve an immediate movement of cash? (20 Marks)
B. Differentiate between
a. Capital expenditure and Revenue expenditure.
b. Expenses and Drawings
c. Gross Profit and Net Profit
d. Cash budget and Cash flow statement
e. Accruals and Prepayments (20 Marks)
C. Explain the following terms:
a. Assets
b. Liabilities
c. Ordinary shares
d. Preference shares
e. Dividend
f. Stock exchange
g. Venture Capital
h. Budget
i. Capital Income
j. Company (30 Marks)
