Accounting
a system of communicating financial information to interested users/parties
Assets
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.
Bank statement
a document that outlines all your transactions with the bank on a particular account
Credit card statement
Monthly account showing all transactions involving a credit card
Credit note
A document showing that a return (sale or purchases) has been made
Invoice
A document showing details of a credit sale or purchase
Liabilities
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
Net worth
An individuals personal contribution in the household. Net worth = personal assets - personal liabilities
Owner’s quity
an owner’s investment/share/contribution in the business.
OE = business’s assets - business’s liabilities
Revenue
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.
Pay slips
Document received with wages/salaries that show gross pay, income tax (PAYE), other deductions and net pay.
Tax return
a statement sent to IRD declaring income and tax for the year.