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23 Cards in this Set
- Front
- Back
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turnover
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net sales from continuing operation
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Current assets
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assets those company expects to convert to cash, sell, or consume in the next 12 months or within business's operating cycle.
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trade debtor
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amount company expects to collect from customers
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Liquid assets order
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cash, fixed deposits with banks and trade debtors are the most liquid assets in that order
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goodwill
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premium paid in the acquisition of subsidiaries
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transaction
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event that affects the financial position of the business enity
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trial balance
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lists all accounts with their balance
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revenue principle
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Record revenue when it is earned, usually when the business has delivered a good or service to a customer
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matching principle
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expenses incurred during the accouting period
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assets
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economic resources owned by the entity(as result of past transaction or event)
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liabilities
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obligation of entity to give up some of its assets to or perform services for non-owners(creditors)in the future + obligations arose from past transaction
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owners'equity
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owners' claims to the assets of the entity
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revenue
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(gross) assets received or to be received by an entity from providing goods to customers OR from investment
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expense
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(not related to liabilities)assets used up as a result of providing goods or services to customers or as a result of investments
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CFO
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receipts and payments of cash arising from the day-to-day operations of the company
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CFI
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receipts and payment from the buying and selling of investments or long term assets
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CFF
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receipts and payment of cash arising from seeking funds from shareholders and lenders
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Accounting equation
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Assets = Liabilities + owners' equity
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GAAP
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broad accounting concepts and accounting principles accounting standards for specific items other pronouncement
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accrual accounting
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record a business activities as soon as it affects financial position of the entity, regardless of whether it affects cash
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ledger
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the book of all the accounts of an entity
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chart of the account
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the contents page of the ledger
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Double-entry book keeping
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a.Every txn affects at least 2 accounts
b.Txn recorded with at least one debit and one credit c.total debit=total credit for each txn |
