Accounting

Front 1

Current asset

Back 1

a recourse controlled by the entity as a result of past events from which future economic benefits are expected for 12 months or less

Front 2

non current asset

Back 2

a resource controlled by the entity, as a result of past events from which economic benefits are expected for more than 12 months.

Front 3

current liability

Back 3

a present obligation of the entity arising from past events the settlement of which is expected to result in an outflow of economic benefits in the next 12 months.

Front 4

non current liability

Back 4

a present obligation of the entity arising from past events from which is expected to result in future economic benefits are expected for more than 12 months

Front 5

owners equity

Back 5

the owners claim on the firms assets.

Front 6

expense

Back 6

an outflow or consumption of an economic benefit or reduction in a inflow in the form of a decrease in assets or a increase in liabilities that reduces owners equity except for drawings

Front 7

revenue

Back 7

an inflow of an economic benefit or saving in an outflow in the form of an increase in assets or decrease in liabilities that increases owners equity apart from capital contributions.

Front 8

creditor

Back 8

a supplier who is owed a debt by a business for goods and services provided to the business on credit.

Front 9

debtor

Back 9

a customer who is owed a debt to the business for goods and services sold to them on credit

Front 10

historical cost

Back 10

transactions should be recorded at their original purchase price, as this value is verifiable by source document evidence

Front 11

entity principle

Back 11

the business is assumed to be an entity seperate from the owners and other businesses and its records should be kept on this basis

Front 12

monetary unit principle

Back 12

all items should be recorded and reported in the currency of the country of location where the reports are being preparted

Front 13

conservatism principle

Back 13

losses should be recorded when probable, but gains only when certain so that liabilities and expenses are not understated and assets and revenues are not overstated

Front 14

reporting period principle

Back 14

the life of the business must be divided into periods of time to allow reports to be prepared, and the accounting records should reflect the reporting period in which a transaction occurs

Front 15

relevance

Back 15

the qualitative characteristic states that reports should include all information that is useful for decision making.

Front 16

reliability

Back 16

the qualitative characteristic states that reports should contain information verified by source document evident so that it is free from bias.

Front 17

unlimited liability

Back 17

a situation where the owner is personally responsible for all debts and liabilities incurred by the business.

Front 18

limited liability

Back 18

the legal status of a company, which exists as a seperate legal entity, so the owners have no further responsibility for liabilites inccured by the business

Front 19

goodwill

Back 19

the value given to the established good reputation, or existing customer base, of a business.