Accounting And Finance Flashcards
What are is a source of finance ?
A source if finance is a way of gaining finance for investment etc.
What is an overdraft?
Is when your are granted to overspend the money in your bank account.
What are 3 accounting principles or concepts?
-consistency
-going concern
-matching
-materiality
-objectivity
-prudence
-realisation
What is the accounting concept consistency?
Accounts produced in the same way
What is the accounting concept going concern?
Operating as normal
What is the accounting concept matching ?
Dates in the record of when the transaction took place not when it was payed.
What is the accounting concept materiality?
The value of the business needs to a be a realistic figure, not calculating every asset
What is the accounting concept objectivity ?
Accounts must be realistic and based on facts.
What is the accounting concept Prudence ?
Similar to objectivity, don’t overstate the financial situation
What is the accounting concept realisation?
Similar to matching , accounts recognise when the legal ownership changes hand not when payment is made.
What is the document called showing profits and costs?
The income statement
What is the document showing assets liabilities and equity ( balance sheet)?
Statement of financial position
How do you work out your net current assets and what’s another term for it?
Current assets - current liabilities = net current assets or working capital
