2.7 Review your understanding of the following concepts and terms discussed in this chapter by writing a short explanation of each of them:

1 Accountancy 2 Entity concept 3 Balance sheet 4 Realization concept 5 Trade credit 6 Trading cycle and credit transactions 7 A = C + L 8 Owner’s capital 9 Money measurement concept 10 Fixed assets 11 Current assets 12 Current liabilities 13 Gross assets 14 Historic cost