Accounts For Enterprise Flashcards
What are business transactions?
Business transactions are activities that affect the financial positions or operations of an enterprise
What is an asset?
Asset is what a business owns. Examples include cash, equipment, machine, land and building.
What is liability?
Liability is what the business owes. Examples include unpaid expenses or a bank loan.
What is an accountant?
An accountant is a person who has the responsibility of preparing the accounts of a business
What is a bookkeeper?
A bookkeeper is a person who records the daily transactions of a business.
What is a financial statement?
Financial statements are reports prepared by accountants to present the financial performance of an enterprise.
What is bookkeeping?
Bookkeeping is the process of recording business transactions in an accurate and systematic way.
What are business documents?
Business documents are original records which represent financial transactions carried out over a given period of time.
What is VAT?
Value Added Tax (VAT) is a percentage tax added onto the price of a good or service.
What is the percentage of VAT in Mauritius?
The VAT rate in Mauritius is 15% on goods and services.
What is a quotation?
A quotation is a document which a seller issues upon the request of a customer. It provides information on the following:
Product details
Selling price per unit
Terms of payment like cash or credit
and any discount
Expected date of delivery
Total payment due
What is an order?
An order is a confirmed request from the buyer to the seller. It includes information on the following:
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details about the product mode of payment
What is an invoice?
An invoice is a document that specifies the amount and cost of goods or services that have been provided by a seller. It includes the following information:
product details
tax rate
VAT registration number
What is a receipt?
A receipt is a document that confirms the
payment of a transaction.
What is a cheque?
A cheque is a written order directing a bank to pay a specified sum of money.
It includes the following:
name of the issuing business
signature of the issuing party
amount paid
