accounting Flashcards
GST paid
expense, debit, you’re paying them
going concern assumptions
records of transactions that occur over several years
currents assets examples
cash, accounts recievable, inventory
business structures
sole trader, partnership, private company, franchise, not for profit
partnership
ABN, GST, TFN, business name, partnership act 1895, partnership agreement
GST collected
income, credit, they owe them
non current assets
turn into money for longer than 12 months
non current assets examples
vehicle, property, machinery
current assets
turn into income within 12 months
non current liabilities
committed for longer than 12 months
non current liabilities examples
long term loan, mortgage
current liabilities
due with 12 months
current liabilities examples
overdraft, accounts payable, short term loan
accounting entity
personal transactions are separate from business no matter the structure
materiality
general purpose financial reports (GPFR), balance sheets, income and cash flow statements, significant items are recorded in financial reports
monetary assumptions
only items that can be expressed in dollar terms are included in accounting records