Accounting Flashcards
WHAT IS AN ACCOUNT?
THE RECORDING OF AN ASSET,LIABILITY OR CAPITAL, EXPENSES OR REVENUE IN A LEDGER.
ACCOUNTING CYCLE
THE RECORDING OF ALL THE TRADING ACTIVITIES FROM SOURCE DOCUMENTS TO THE PREPARATION OF THE FINANCIAL STATEMENTS
WHAT IS ACCOUNTING?
A SKILL OR PRACTICE OF MAINTAINING ACCOUNTS AND PREPARING REPORTS TO AID THE FINANCIAL CONTROL AND MANAGEMENT OF A BUSINESS
ACCOUNTING EQUATION
CAPITAL= ASSETS - LIABILITIES ASSETS= CAPITAL + LIABILITIES LIABILITIES = ASSESTS - CAPITALS
BALANCE SHEET
A STATEMENT SHOWING THE ASSETS, CAPITAL AND LIABILITIES OF A BUSINESS
DOUBLE ENTRY BOOK-KEEPING
A SYSTEM WHERE EACH TRANSACTION IS ENTERED TWICE ONCE ON THE DEBIT SIDE AND ONCE ON THE CREDIT SIDE
BOOK KEEPING
THE PROCESS OF RECORDING OF ACCOUNTING DATA IN THE BOOKS OF ACCOUNT
INVOICE
A DOCUMENT PREPARED BY THE SELLER AND SENT TO THE PURCHASER WHENEVER A BUSINESS BUYS GOOD OR SERVICES ON CREDIT
CREDIT NOTE
A DOCUMENT SENT TO A CUSTOMER SHOWING ALLOWANCE GIVEN BY SUPPLIER IN RESPECT OF UNSATISFACTORY GOODS
AN ASSET OR EXPENSES IS
A DEBIT ENTRY
CREDIT ENTYRY IS A
LIABILITY, CAPITAL OR INCOME
ASSETS IS
RESOURCES OWNED BY THE BUSINESS
CAPITAL IS
THE TOTAL OF RESOURCES SUPPLIED TO A BUSINESS BY ITS OWNER
LIABILITIES IS
THE TOTAL OF MONEY OWED FOR ASSETS SUPPLIED TO THE BUSINESS
WHAT IS CREDIT?
THE ACCOUNT THAT IS GIVING GOODS,MONEY OR SERVICE
