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7 Cards in this Set
- Front
- Back
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What are the 6 stages of the business life cycle? |
1. Owners inject capital 2. Owners purchase NC assets and inventories 3. Begin trading 4. Earn profits 5. Pay dividends 6. Retain profits in business |
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What are net assets |
Share capital + reserves |
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What is the first in first out method of inventory |
First goods purchased are first goods sold |
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Turnover is? |
All cash and credit sales for period (even if not received yet) |
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What is prudence |
Only recording assets/transactions when certain Never overestimating sales or underestimating liabilities Aim to reflect a realistic view of business position |
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Net book value |
This is the amount an asset is valued at in records after any depreciation (Cost - depreciation) |
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What are the 4 qualitative characteristics of financial statements? |
1. Understanding 2. Relevance 3. Reliability 4. Comparability |
