Accounting Flashcards
1
Q
Non current assets
A
Componys long term investmennts
Not expected to become cash within an accounting year
Eg, furniture, vehicles, land
2
Q
Asset register
A
List of all assets owned by a business
Includes location, condition, owner, amount worth
3
Q
Capital Expenditure
A
Funds used to upgrade and maintain assets
Adds value to asset
Eg rego for a car
4
Q
Expenses
A
Does not add value to an asset
Needs to be purchased to continue business operations
Eg insurance for a car
5
Q
Depreciation
A
Allocating the cost of a tangible assets over its useful life
Goes down in value each year
Straight line or diminishing balance method
