Appendix A Flashcards
Šta sve expenses mogu biti?
wages, cost of goods sold, power, rent
Šta sve income može biti?
sales, interest received(interest expense i njega debitujemo)
Šta su chart of accounts?
all the accounts that business uses
Balance
uvek je pozitivan i zavisi od toga čega više imamo
Šta znači system is self-balancing?
Total debits should equal total credits
Kako purchase of service izgleda za T-accounts?
Ukoliko plaćamo cash-om it decreases cash na credit strani ili ako plaćamo na credit it increases accounts payable na credit starni. A na debit strani it increases expenses.
Kako purchase of goods izgleda za T-accounts?
Takodje it incerases expenses na debit strani. These goods can be raw materials(used in production process) or goods to be sold. POENTA JE DA SE KORISTE IN SHORT-TERM
Šta se dogadja ako imamo purchase of goods which are intended to be used in long-term(that are not intended to be transformed or sold)?
Then we have increase in assets kao npr machines, buildings….
What does the balance on the income and expense account represents?
It represents decrease or increase in woner’s equity.
What is the convention of accounting(or reporting period)?
Operations continue over time without interupting over the year. Npr pocnu krajem godine ali se nastave i na početak sledeće.
Accural accounting principle
Principle which suggets how to recognize income and expenses in the income statement. Income and expenses are recorded when we sell our good or services and when we use our resources even if we dont have the payment and we didnt receive the money.
A transaction may involve the recognition of a liability that will be satisifed by a transfer of cash at a future date but it will be recorded at the time of initial transaction , without waiting for the flows of cash.
Cash basis accounting
potpuno suprotno od accural accounting principle-računamo kada se dobija ili plaća cash.
Expense recognition(or matching principle)
Expenses are recorded when they happen, when we used our resources, a to može biti različito i ne u isto vreme kada smo iskoristili pare.
Accured expenses(accurals)
costs that are applicable to the current accounting period but have not yet been recorded as expenses.
Prepaid expenses(prepayments)
costs that have been already recorded but relate tot the consumption in the future period
How to accure expenses?
Increase expense and incraese payables
How to recognize prepayment?
Incraese receivables and decraese expense
Describe defferals
prvo se plati pa tek onda pružamo service
