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19 Cards in this Set
- Front
- Back
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What is the accounting equation?
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Assets = Capital + Liabilities
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What are the main resources of a business?
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Assets, Capital and Liabilities
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Name 6 types of current assets
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Cash in hand, at bank, debtors, stocks, prepaid expenses,accrude receipts.
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Name six fixed assets
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Land&Building, premises, plant and machinery, equipment, furniture and fittings, motorvehicles.
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Name some Current Liabilities
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Creditors, bank O/D, expenses owing, accounts payable
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Name some long term liabilities.
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Bank loans and motgages
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Name some intangible assets
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Goodwill, copyright, patent.
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Give a statement which best describes sales.
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Sale of item previously included in 'Purchases'.
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How does profit and loss affect capital?
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Capital is reduced by loss and increased by profit.
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What is a trial balance?
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A list of balances of the books.
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When should the trial balance totals differ?
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Never
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Where is Gross Profit calculated?
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The trading account
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What is net profit?
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The gross profit less expenses of the period.
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Where is the debit entry for net loss placed?
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On the debit side of the capital account.
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How do we calculate the value of closing stock at the end of a period?
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By conducting stocktaking.
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Using the permanency method arrange current assets in descending order.
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Stock, debtors, bank, cash
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What is the balance sheet?
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A list of balances after the profit and loss account has been drawn up.
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Name to books that are not apart of the double entry system.
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Trial Balance, Balance Sheet
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Why does carriage inwards go in the trading account?
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It is basically apart of the cost of buying goods.
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