Accounting Workbook 1 Flashcards
Bank statement
issued by the bank to the org on total expenses in the month
credit transaction
Memo
issued to the department by the organization on their total expenses.
Cheque
not a type of source doc
A piece of paper which is given to its receiver who then hands it into the bank to receive the amount of money the cheque is worth.
Invoice
a commercial doc given issued by the seller to the rog at the end of a time period e.g.- every month, quarter, year.
identifiable by the invoice number and terms e.g - 6/7, n/30
6/7 - 6% off if paid in 7 days
n/30- must pay in 30 days
Cheque Butt
the part of the cheque where you can keep + record details on what it was for, who its for, date, etc.
Receipt
identifiable by:
receipt no.
received from
invoice number
cash transaction
The Acc Process
the process of taking financial data and converting it to financial info in order to be able to make decisions.
Advice
the option available to the owners in order to set aims/objectives together with recommendations.
Recording
sorting, classifying and summarizing the data contained in the source documents so then its more usable
Reporting
the preparation of financial statements that communicate financial info to the owner
Source document
documents that provide evidence of a transaction and the details of the transaction.
assets
a present economic resource controlled by the entity (as a result of past events ) that has the potential to produce economic benefits
Liabilities
a present obligation of the entity ( as a result of past events) to transfer economic resource
Owners Equity
the residual interest in the assets of the entity after a;; its liabilities are deducted
Current Assets
a economic resource controlled by the entity as a result of past events, that is expected to be converted into cash, sold or consumed within 12 months.
