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14 Cards in this Set
- Front
- Back
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What is Revenue
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Revenue is money earned throught the business.
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What is a Profit and Loss Statement?
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A Profit and Loss statement records the things which go into the business and out of the business.
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What are the 4 Accounting Concepts
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The Four Accounting Concepts are Compatability, Relevence, Reliablity and Understandability
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Accounting Principles
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Entity, Reporting Period, Consistancy, Historical Cost, Moneyary Unit, Conservation, Going Concern.
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Define Compatability
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Accounting reports must beable to be compared with another report
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Define Relevance
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The report must be relevent
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Define Reliability
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The report must come from a reliable source
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Define Understandability
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Everyone must beable to understand the report, must be easy to read, no hard words.
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What is the Accounting Process?
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Business Documents, Datainput, Business Report, Business Devision.
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What does a balance sheet do?
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A Balance sheet outlines the financial structure of a business.
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What is the Accounting Equation?
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The Accounting Equation is A=L+OE
Assets = Liability + Owners Equity |
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How do you work out Working Capital?
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Current Assets - Current Liability = working Capital
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How do you work out Working Capital Ratio?
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Current Assets / Current liabilities = Working Capital Ratio
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What is Liquidity?
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Liquidity is the amount of money you have to spend
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