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23 Cards in this Set

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