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Accounting Term 2❤️ > Accounting? > Flashcards

Accounting? Flashcards

1
Q

What is a debit order?

A

Permission to another person/business to take money automatically from your bank account

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2
Q

What is the benefit of using a cash register instead of receipts?

A

They work quicker and more accurately

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3
Q

Which type of transactions is cash invoices used?

A

Cash sales

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4
Q

Cheque

A

Written order, giving the bank order to pay a specified amount of money from the drawers account into the beneficiaries account or in cash

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5
Q

Cheque counterfoil

A

Part of the bank cheque kept by the issuer and on which a record of the transaction is made

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6
Q

EFT voucher

A

Electronic document
Internet banking
Printed and used as a source document

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7
Q

Cash invoice

A

Specified amount cash between buyer and seller

Include quantity, description and price of goods or services

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8
Q

Bank statement

A

Received from bank where business keeps current account

Includes 
Opening balance- amount on first day 
Deposits ( credit side) 
Payments ( debit side) 
Closing balance- amount on last day
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9
Q

CRR

A

Speeds up sales
Summary of all sale transactions
Record total sales

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10
Q

Duplicate receipt

A

Issued by hand or electronically

Money received- original given client and duplicate kept by accountant to record transaction in CRJ

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11
Q

What is a source document

A

Document issued or received by entity proving transaction taken place
Contains info related to nature of transaction that has taken place and is used to anger transaction in books of first entry (journals)

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12
Q

What should be indicated in all source documents

A 
Date 
Document number 
Signature person received/ issued 
Amount 
Description 
Name person isssued/received
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13
Q

Equity (8)

A

Drawings and capital
Owner takes from business and owner contributes money: assets

Expenses and income
Decreases equity and increases equity

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14
Q

Assets (8)

A 
Non current:
Monetary value longer 12 months used generate profit 
Example: land and buildings 
                 Vehicles 
                 Equipment 
Current: 
Cash or cash equivalent can be changed into cash within 12 months 
Example
Trading stock 
Debtors 
Bank
Petty cash 
Cash float
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15
Q

Liabilities (8)

A

Non current
Debt of business more than 12 months
Example
Mortgage loan

Current 
Debt of business owed less 12 months 
Example 
Creditors 
Bank overdraft
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16
Q

General ledger

A

Accounts containing summary of the info in journals

17
Q

Balance sheet

A

Financial position of business on year end

18
Q

Income statement

A

Indicates profit or loss

19
Q

Source document

A

Used by accountant to record transaction

20
Q

Transaction

A

Agreement with monetary value between two parties

21
Q

Transferring

A

Transferring from journal to ledger

22
Q

Journal

A

First entry to record transactions

23
Q

Trial balance

A

Accounts in the General ledger with their balances

24
Q

Debtor

A

Owes business money

25
Q

Petty cash

A

Cash on hand used when small amounts are due

26
Q

Cash float

A

Cash in Till

27
Q

Land and buildings

A

Long term assets which shows purchase price or cost of land and buildings

28
Q

Creditors

A

Business bought goods on credit from creditors m. Individual or business who owes the business money

29
Q

Bank overdraft

A

Loan arrangement under which back extends credit up to a maximum amount
Overdraft limit

30
Q

Equity

A

Investment of the owner in business

31
Q

Current income

A

Delivering services money received

32
Q

Commission income

A

Selling something on behalf of somebody

33
Q

Interest on current account

A

Money received on the favorable balance of the back account

34
Q

Consumables

A

Goods used delivering services

Shampoo

35
Q

Interest on overdraft

A

Interest charged by the bank on oberdraft

When business owes the back money

36
Q

Fees

A

Charges business registrations and renewals as well as the professional services of accountants etc.

37
Q

Sundry expense

A

Infrequent costs not assigned to individual ledger accounts but are classified as a group

Accounting Term 2❤️ (1 decks)

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