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Accounts > key terms > Flashcards

key terms Flashcards

1
Q

current assets

A

something you own for less than a year

e.g.

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2
Q

intangible assets

A

assets that aren’t physical in nature

e.g. patent

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2
Q

fixed assets/ non-current assets

A

something you own for a long period off time/ over a year

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3
Q

tangible assets

A

assets that are physical in nature

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4
Q

financial assets

A

investments

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5
Q

liability

A

something a business owes/ a debt

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6
Q

Assets

A

something a business owns

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7
Q

current liability

A

must be paid within 1 year

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8
Q

buying on credit

A

buy now pay later

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9
Q

Capital

A

when the owner puts their private money into a business

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10
Q

Debtors

A

people who owe the business money

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11
Q

Creditors

A

people who the business owe money

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12
Q

Expenses

A

a cost for the business

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13
Q

drawings

A

when an owner takes money or resouces from the business for personal use

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14
Q

bank overdraft

A

when a business has an agreement with the bank to spend more than what’s in their account and pay it back with interest

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15
Q

dividends

A

a sum of money paid to shareholders out of profits

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15
Q

depreciation

A

a reduction in the value of an asset with the passage of time, due in particular to wear and tear

16
Q

gross profit

A

profit before expenses

(sales - cost of sales)

17
Q

income / gains

A

money the business receives regularly

18
Q

long term liabilites

A

paid back over a long period of time

e.g. mortgage

19
Q

Paying in slip

A

A pay-in-slip is a bank deposit slip that is used to deposit money into a bank account. When a person needs to deposit checks or cash into his bank account, he normally fills out a slip that includes the account number, the date, and the deposit details.

20
Q

Cheque counterfoil

A

part of a cheque, which is torn off and kept as a receipt by the drawer of a cheque to serve a piece of evidence or proof for having made the payment

21
Q

Reconciliation

A

an accounting procedure that compares two sets of records to check that the figures are correct and in agreement

22
Q

Source documents

A

Proof that the transaction occured

23
Q

Subsidiary books

A

Books of prime entry

24
Q

External stakeholders examples

A

Government, customers, local community, competitors, suppliers

25
Q

Internal stakeholders examples

A

Employees, owners, managers

26
Q

Drawings T accounts

A

Opposite of capital - when owner takes money/ resources out of the business

27
Q

Purchase order

A

An agreement to purchase the product

28
Q

Delivery note

A

Person who accepts the package signs it

29
Q

Invoice

A

A demand for payment (sent from the supplier to buyer requesting payment)

30
Q

Credit note

A

Opposite of invoice - a refund document (reduces amount owed by buyer)

31
Q

Statement of account

A

A reminder sent to customers to remind them of their invoices

32
Q

Remittance advice

A

To let a seller know what invoices are being paid/ they’ve paid

33
Q

Sales ledger

A

Contains accounts of trade receivables (credit customers)

34
Q

Purchase ledger

A

Contains accounts of trade payables (credit suppliers)

35
Q

Direct debit

A

Payments usually vary each time

36
Q

Standing order

A

Regular payments - fixed amounts going out each time

37
Q

Credit transfers (CT)

A

Money you send out but not on a regular basis

38
Q

Dishonoured cheque

A

when a payee cannot successfully deposit the payer’s cheque

39
Q

Unpresented cheque

A

A cheque drawn (and credited) in the cashbook that had not yet been processed by the bank and therefore not shown in the bank statement

40
Q

Outstanding lodgement

A

Funds (that have been debited) in the cashbook that has not yet been processed by the bank and therefore not yet show on the bank statement

Accounts (7 decks)

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