Final Account Higher Level Adjustments Flashcards Preview

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Flashcards in Final Account Higher Level Adjustments Deck (21):
1

Where do adjustments always appear

Underneath the trial balance

2

Where do they appear

They appear twice
- once in trading p + l balance
- once in balance sheet

3

What is closing stock

Current asset

4

Depreciation

Reduction in value of fixed assets

5

Expense due

When you owe an expense at the end of a year

6

A expense due is...

Current liability

7

Expense repaid

Expense paid in advance

8

Expense paid is.....

A current asset

9

Income due is a...

Current asset

10

Income repaid is a...

Current liability

11

What is the basic rule

Add due, subtract prepaid

12

Current liability

When you owe someone something at the end of the year

13

Trading account

To show revenue and expenses directly to the trade e.g. Care dealer buys and sells cars.

14

Profit and loss account

All other income and expenditure

15

Profit and loss appropriation

This shows how we divide up the net profit (how much money is left to finance the business)

16

Balance sheet

List of all assets and liability in the business and how they paid for them

17

Where does carriage outwards go

Less expenses

18

What are the heading for the balance sheet

Fixed asset
Current asset
Current liability
Financed by

19

What is in current asset

Closing stock
Debtors
Cash

20

What is in current liabilities

Creditors
Bank od
Working capital

21

What is in financed by

Shares (authorised + issued)
Add reserves
Sometimes loans