Accounting and Marketing Concepts Overview Flashcards
(26 cards)
What are assets?
Assets are resources owned by a business that provide future economic benefits, are controlled by the entity, and arise from past transactions.
How are assets categorized?
Assets are classified into current (expected to be consumed within 12 months) and non-current (expected to provide benefits beyond 12 months).
What types of assets exist?
Assets can be tangible (e.g., cash, inventory, vehicles) or intangible (e.g., licenses, trademarks, goodwill).
What are common examples of assets?
Common examples include cash, accounts receivable, land, and investments.
Why is understanding assets important?
Understanding assets is crucial for assessing a company’s financial health and operational capacity.
What are liabilities?
Liabilities are present obligations of the entity arising from past events, requiring the transfer of economic resources.
How are liabilities categorized?
Liabilities are divided into current (due within 12 months) and non-current (due after 12 months).
What are common examples of liabilities?
Common liabilities include accounts payable, loans, mortgages, and bank overdrafts.
What is the impact of liabilities on financial statements?
Liabilities are critical in determining a company’s leverage and financial stability.
What is owner’s equity?
Owner’s equity represents the residual interest in the assets of the entity after deducting liabilities.
What components make up owner’s equity?
It includes retained earnings, contributed capital, and other comprehensive income.
Why is owner’s equity important?
Owner’s equity is a key indicator of a company’s financial health and profitability.
How is owner’s equity calculated?
It can be calculated using the accounting equation: Assets = Liabilities + Owner’s Equity.
What is a balance sheet?
A balance sheet is a financial statement that summarizes a company’s assets, liabilities, and owner’s equity at a specific point in time.
What is the structure of a balance sheet?
It is divided into two main sections: assets on one side and liabilities plus owner’s equity on the other.
What is the purpose of a balance sheet?
The balance sheet provides insights into a company’s financial position and liquidity.
What is GST?
GST is a broad-based tax of 10% on most goods and services sold or consumed in Australia.
How is GST revenue used?
The revenue generated from GST is used for public services such as health, education, and infrastructure.
How can GST be calculated?
To calculate GST, one can add 10% to the pre-GST price or determine the pre-GST price from the total price including GST.
What is the role of marketing?
Marketing encompasses actions aimed at attracting customers to a company’s products or services.
What are key marketing goals?
Key marketing goals include increasing brand awareness, acquiring new customers, and boosting website traffic.
What are consumer motivations?
Consumer motivation refers to the underlying reasons for consumer behavior, influencing purchasing decisions.
What are market opportunities?
Market opportunities arise when there is a gap in the market where consumer needs are not being met by existing products or services.
What are the 4P’s of marketing?
The 4P’s (Product, Price, Promotion, Place) are essential components of a marketing strategy.
