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Flashcards in Accounting Deck (12)
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1
Q

Accounting

A

a system of communicating financial information to interested users/parties

2
Q

Assets

A

THings of value own by an individual. Future economics benefits (FEB) controlled by the business as a result of past transactions eg buildings, land, furniture. Past transaction - present control - future economic benefit.

3
Q

Bank statement

A

a document that outlines all your transactions with the bank on a particular account

4
Q

Credit card statement

A

Monthly account showing all transactions involving a credit card

5
Q

Credit note

A

A document showing that a return (sale or purchases) has been made

6
Q

Invoice

A

A document showing details of a credit sale or purchase

7
Q

Liabilities

A

Amounts owed to other people (creditors) or institutions (banks). Future sacrifices of economic benefits (cash) that the business is currently obliged to make as a result of a past transaction. eg loans. Past transaction - present obligation - future sacrifice of economic benefits

8
Q

Net worth

A

An individuals personal contribution in the household. Net worth = personal assets - personal liabilities

9
Q

Owner’s quity

A

an owner’s investment/share/contribution in the business.

OE = business’s assets - business’s liabilities

10
Q

Revenue

A

Income received by a business eg sale revenue. Gains of future economic benefits that result in increase in assets or decrease in liabilities and increases owner’s equity.

11
Q

Pay slips

A

Document received with wages/salaries that show gross pay, income tax (PAYE), other deductions and net pay.

12
Q

Tax return

A

a statement sent to IRD declaring income and tax for the year.